Australian Mining September 2013

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VOLUME 105/9 – SEPTEMBER 2013

SERVING THE MINING INDUSTRY SINCE 1908

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AM0913_000_SIE

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AM0913_003.pdf

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COMMENT

Mining Mining in times of change Australian

Cirrus Media Manufacturing & Electronics Group: Associate Publisher – Martin Sinclair Email: martin.sinclair@cirrusmedia.com.au Editor – Cole Latimer Tel: (02) 8484 0652 Email: ozmining@cirrusmedia.com.au Journalists – Vicky Validakis Tel: (02) 8484 0964 Email: vicky.validakis@cirrusmedia.com.au Brent Balinski Tel: (02) 8484 0680 Email: brent.balinski@cirrusmedia.com.au Alex Heber Tel: (02) 8484 0884 Email: alexandra.heber@cirrusmedia.com.au Group Sales Manager – Tim Richards Tel: (02) 8484 0829 Mob: 0420 550 799 Email: tim.richards@cirrusmedia.com.au QLD and SA Sales Manager – Sharon Amos Tel: (07) 3261 8857 Fax: (07) 3261 8347 Mob: 0417 072 625 Email: sharon.amos@cirrusmedia.com.au WA Representative – Jamie Wade Mob: 0435 945 868 Email: jamie@wadebusiness.com.au South Africa – Bob Stephen Stephen Marketing PO Box 75, Tarlton, Gauteng 1749, South Africa Tel: 27(011) 952 1721 Fax: 27(011) 952 1607 USA – Jonathan Sismey Cirrus Media 24th Floor, 125 Park Avenue, New York, NY 10017 Tel: (1) 212 370 7445 Fax: (1) 212 370 7441 Email: jsismey@ix.netcom.com Larry Arthur Cirrus Media Suite 203, 3700 Campus Drive, Newport Beach, CA 92660 Tel: (1) 949 756 1057 Fax: (1) 949 756 2514 Email: lharthur@ix.netcom.com Graphic Designer – Dave Ashley Production Co-ordinator – Tracy Engle Tel: (02) 8484 0707 Fax: (02) 8484 0966 Subscription Rates – Australia (surface mail) $140.00 (incl GST) New Zealand A$148.00 Overseas A$156.00 Reader Services – 1300 360 126

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With the election voted, been, and gone, what is the industry doing?

N

ow that the election is on that spotlight has turned away from mining.

This is great.

Last month I talked about how the media painted the mining industry into a position which simply did not exist, casting it as on its knees and close to collapsing.

With the election campaign rolling, the back and forth between Rudd and Abbott is all we’re hearing about, and apart from the odd bit of policy relating to the mining tax, the industry has lost much of the mainstream media spotlight.

Fantastic.

Now we can actually see how the industry is going without the incessant negativity that is often thrown on the sector, as good news stories just don’t rate.

Case in point – AIMEX. You would think Austral-

Comment Cole Latimer ozmining@cirrusmedia.com.au ia’s largest mining exhibition would rate a mention across the mainstream media.

But search as you may, you’re unlikely to find much, if any mention of the show at all, despite the thousands of people that passed through its doors.

It was us, Mining Monthly, the Australian Journal of Mining, Ferret, and High Grade covering it from the Australian side.

(Go ahead, look around the internet, I’ll wait.)

This is disappointing. It was a great show, and while not as large as the previous exhibition it is only to be expected considering one was

FRONT COVER

Average Net Distribution Period ending March 2013 8,038 Printed by Bluestar Print 83 Derby Street, Silverwater, NSW 2128 Tel: (02) 9748 3411 Published 12 issues a year

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held at the peak of a once in a lifetime mining boom while the other is in a period of contraction and slow down within the Australian mining industry.

Personally, myself and the team here at Australian Mining had a great AIMEX. If the industry had ground to a halt like we’re constantly being told then we wouldn’t have been run off our feet the way we were.

While there weren’t as many huge pieces of capital equipment, there was still plenty of new releases of technology to keep us and the attendees occupied.

And that, really, is the

way the industry is going right now.

While there is still a bit of investment, much of the focus is on getting the smaller bits of equipment, that piece of technology, encountering that new idea that will ensure a mine works more efficiently.

Much of this is because mines are no longer ramping up the way they were, instead they are now actually mining, which requires far less people and machines.

And now that we are all in this mining phase, any policies brought in by a new government, or the old one, will have more of an impact, especially in regards to royalties.

As the spotlight moves from mining to the election, whatever your level of interest in either candidate or third party, keep the industry in mind when you vote.

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On the front cover of this edition of Australian Mining we’ve highlighted Indigenous workers in the Pilbara. Indigenous workers and companies are playing a larger and larger role in many ‘remote’ mining operations. As they often live in the region, and understand the conditions better than most, they provide a localised workforce for many miners, saving them costs on setting up a fly in fly out operation. And like other local communities involved in mining operations, they are more invested in the mine’s future and its continual operations. Additionally, they help to keep A M the A Eprofits S T of the mine within the region.

AustralianMining

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AM0913_004.pdf

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Contents

September 2013 issue

Thorium: Australia’s new nuclear power?

Over the hedge

The future of our energy generation?....p52-54

How hedging affects gold miners....p34-35

Features

COAL SEAM GAS The CSG debate: Under pressure An investigation into the truth of coal seam gas ................................................ p22-26

DIGGERS & DEALERS WRAP Digging into dealers A spotlight on the week that was .......... p30-31 GOLD Northern Star shines bright A gold miner defying the gloom ................. p32 POWER GENERATION Shedding light on the issue Miners going green with solar .................... p36 Mine safe generators Making mining safer .................................. p38

MINESITE VEHICLES Remote Rio remediation Australian innovation cleaning up AUSTRALIAN MINING ON-SITE Kennecott ................................................... p40 AM 0 7 in 1 3 0 0 0 _ ADE 1 2 0 1 3 - 0Keeping 6 - 1 8a-head T 1 6 :with 1 3 technology : 2 7 + 1 0 : 0 0 The story the_ sand The opening of the DeGrussa mine ............ p28 Excavating in a new way ............................ p42

Drug and alcohol compliance Training delivered on-site at your workplace

A new player in the game Making in-roads into Australia .................. p44 Cutting vehicle fire risks Preparation can save lives........................... p46 SAFETY Up in smoke Drug testing on site .................................... p48 Staying on message Making safety auditing simpler .................. p50

Regulars NEWS .......................................................... p8 PROSPECT AWARDS ................................ p58 JOBS .......................................................... p60 EVENTS ..................................................... p62 AMINING 07/08/09 2013

PILBARA SPOTLIGHT Staying strong in the Pilbara An insight in to Atlas Iron’s operations ............................................. p10-12 Power in the Pilbara Installing energy on remote mines ......... p14-16 Working for Pilbara, in the Pilbara Indigenous employment in the Pilbara... p18-19 Tracking future iron ore CSIRO technology is helping to predict Pilbara deposits .......................................... p20

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September 2013

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INDUSTRY COMMENT

The NEW BATTLE brewing Actions at the Collinsville mine are likely to splinter a community, The Dirt writes.

A

major industrial relations battle is taking shape in Queensland as GlencoreXstrata plan to suspend operations at its Collinsville coal mine, forcing workers to sign a new agreement if they want to keep their jobs. However after 400 workers were notified by Thiess that their employment contract would end on August 31, they face an uncertain future as GlencoreXstrata are refusing to give preference to the existing workforce.

Glencore argue that the mine has been unprofitable for the last 18 months, and say the closure is part of a transition phase that was attempting to keep the mine viable.

A spokesman from GlencoreXstrata told Australian Mining that “the current workplace agreement has restrictive practices and is a hin- CHPP. However the CFMEU has could start from scratch and not have drance to the mine being in a position accused the mine of wanting to reo- to worry about agreements made in to being as productive as it can be”. pen as a greenfields site, an enterprise the past. President of Queensland’s Other measures being taken in- agreement that normally only applies CFMEU Stephen Smyth accused the clude redesigning the mine plan to to new ventures. This would change company of being anti-union and anti allow equipment, and vowed to A Mfor 0 9 larger 1 3 _ 0 0 0 _ L P increasS 1 Glencore’s 2 0 1 3 compliance - 0 8 - 2 9with T 1 enterprise 4 : 2 1 : 0 collective 1 + 1 0 : bargaining 0 0 ing strip lengths, and upgrading the bargaining, basically meaning they fight for workers rights.

“This is shaping up to be a big one,” he said.

While the unions are crying foul, and Glencore continues to defend its decision, it’s easy to lose sight of the real impact this is having on the locals in Collinsville, who are living in the very real fear that as many of 190 of them will be out of work. No one is suggesting Glencore should have to bend to the every whim of the unions, and if they wish to restructure their workforce they have every right do to so in order to restore the profitability and viability of the mine. But saw what can happen when the relationship between the community and miners’ sour in the case of BMA and its twoyear furore with the CFMEU. A social licence to operate should still be at the forefront of every mining operations profile, because once you lose that trust it is incredibly hard to get back, which can affect future developments opportunities elsewhere. But it’s also in the union’s best interest to fight fair so workers aren’t left in the lurch as it appears they have been in Collinsville.

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September 2013

AustralianMining

www.miningaustralia.com.au

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AM0913_008.pdf

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HEADLINES

The latest mining news and safety Australian Mining presents the latest news and safety affecting you from the boardroom to the mine and everywhere in between. Visit www.miningaustralia.com.au to keep up to date with what is happening.

How shifting to CSG helped firm survive

“We’ve had to get back in there to generate sales and build that side of the business.”

Equipment supplier MAC’S Engineering has looked to diversification as a way to survive the Former coal mine transformed mining downturn. into community hub The company acted swiftly as the downturn hit A former coal mine in Belgium has been reborn and realised it could invest in the coal seam as a modernist community space, with high gas industry as a way to survive the downturn. schools, movie theatres and hiking tracks The company also decided to shift away from taking the place of old mining infrastructure. open cut coal mining and looked at how they The Winterslag mine in Genk, on the border of can better use their sheds.

Belgium and Germany, was built in 1917 and “When the major mining houses are driving operated until 1988. down costs, everyone down the supply chain Since then the site – including processing has to do it,” company director Mortess said. facilities, factories, and even the underground “So we looked top to bottom, left to right. tunnelling system – have been revitalised, “We’ve been quite successful diversifying into transforming the mine site into a space to be coal seam gas, which was part of a strategy enjoyed by the local community called C-mine. that started two years ago,” Mortess said.

The site now hosts a movie complex, a high “That was planned as part of overall growth, so school, with the former slag heap turned into there was no luck involved in it. But it’s proved a hiking area. But the work has not stopped to definitely be the right decision.” there.

Australian Mining gets the latest news Open cut coal comprised of 65-70 per cent The mine’s old ventilation shaft has been every day, providing mining professionals of the company’s core operations. But the transformed into an “experience space,” where with the up to the minute information company is branching out acquiring more people can explore a maze of underground on safety, news and technology for work from companies like Aurizon, Ergon and L a n e Wo r k S a f e _ Q P . p tunnels d f and P aclimb g eto the 1 top2of 9the/ 180-foot0 7 / 1 3 , the1Australian 2 : 2 4 mining P M and resources Powerlink. tall ventilation tower into an observation deck. industry.

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Visitors say the C-Mine Expedition does not follow a set path.

“It takes visitors through a range of different disorienting spaces, starting with an archive that carries out the memory of the mineindustry,” the architects said.

These are said to include ‘atmospheric spaces’ where sounds and images of the mine’s formers life fill the air, as well as mine-specific art installations.

The ‘unusual creative space’ of the C-Mine is becoming a burgeoning tourist attraction for the town, with thousands of people visiting the space each year.

A country club in the Pilbara has been inundated with calls from people who have paid deposits to attend a mining exhibition that doesn’t exist.

Perth-based business, Australian Industry and Lifestyle Exhibitions, is advertising a three-day mining and resources expo at the Karratha Country Club for next month on various mining websites, as well as on its own site.

However the club’s General Manager Nola Brown says the event has not been booked.

“I’m taking anywhere from two to four calls a day for the last probably three weeks with people who have paid the deposit for the expo and unfortunately can’t get their money back,” she said.

“It was never ever booked with us.

“Hopefully it’s not going to have any kind of

reflection on the country club, but unfortunately the website [makes it] look like it was us.

“That was created without any permission from anyone from the country club.”

Speaking to Australian Mining, exhibition organiser John Webb said the president of the country club knew about the event, saying he sent an email with proof of the booking to Brown last night.

However Brown reiterated that while the president of the club recalls speaking to Webb about the exhibition, it was never officially booked.

“It was never, ever, ever, officially booked,” Brown said.

Brown said she was still awaiting the email proof for the booking promised to her by Webb.

Brown said she first noticed something was amiss when she visited a website purporting to be that of the country club promoting the event, but said the proposed set-up was too big for the club to host.

“The plan on it was too big for the country club,” she said.

Brown said she made several attempts to contact Webb, but was not provided with a clear answer on either proof of the booking or further details of the event.

Brown said she feels for the exhibitors who had paid for flights and accommodation to be at the event.

“I told them to hold off on paying any more money,” she said.

Webb told Australian Mining he had emailed exhibitors to let them know the event had been postponed, adding that he did not know why they were putting calls through to the country club.

Webb said he was now in talks with Lesiureplex, Karratha around holding the exhibition there.

In 2009, the Australian Competition and Consumer Commission found Webb guilty of misleading and deceptive conduct under the Trade Practices Act.

NSW mining amendments splits region The NSW government’s changes to regulations on mining proposals have split the midwestern area of state.

The amendments aim to improve certainty for investors and community members, by giving priority to the economic factors of mining projects and would set standards for air quality, noise and water pollution.

The proposed amendments were on public exhibition until early August, after which the NSW Department of Planning and Infrastructure published more than 1000 of the submissions. www.miningaustralia.com.au

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AM_0913_010.pdf

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PILBARA SPOTLIGHT

Staying STRONG in the Pilbara Despite reporting lower profits for 2013, Atlas is not looking to become a takeover target.

Alex Heber writes.

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September 2013

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P

rofits of Australia’s miners are dropping like flies this reporting season, with Pilbara iron ore miner Atlas Iron a recent addition to the impairment party.

Lower iron ore prices coupled with a strong Australian dollar has hit iron ore miner Atlas Iron where it hurts, seeing it post a net loss of $245 million for 2013.

Releasing its 2013 annual results in August, the miner’s underlying profit after tax was $13.7 million, plummetting 81 per cent from $72.2 million.

Slumping profits prompted Atlas Iron boss Ken Brinsden to dismiss takeover rumours, as investors expressed sceptisim over the company’s expansion plans.

“As to what people might consider of Atlas from the point of view of a takeover, in essence we always stand ready to defend the company,” Brindsen said.

“There’s a lot more value to be added.”

The miner will have a total of five mines coming online in the next five years, announcing plans to develop its Mount Webber iron ore mine, located 230 kilometres from Port Hedland, in July.

Atlas shipped 7.4 million tonnes

of iron ore in 2013, but falling profits show just how succeptable the mid-tier iron ore player is to the rise and fall of commodity prices, which fell to a near-three year low of $US86 per tonne last September.

The miner said on average it received $US105.84 a tonne for its iron ore, down from $US125.17 a tonne the previous year.

“Commodity prices during the year were impacted through a slowdown in Chinese demand and tightening credit in China, combined with growth in supply of iron ore,” the company said.

Europe’s debt crisis and US economic uncertainty also hit global demand for steel, Atlas explained.

Atlas has also written $458.1 million off asset values of its undeveloped Horizon I and Horizon II exploration projects, adding $245 million to its full year loss.

Despite the raft of writedowns Atlas announced an unfranked dividend payment of 3 cents a share and was positive about iron ore’s future, even in the face of a slowing Chinese economy.

Recognising it has been a challenging year for the company, with Continued on page 12 www.miningaustralia.com.au

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PILBARA SPOTLIGHT

Continued from page 10

lower iron ore prices, production issues and the company’s share price halving since Feburary, the company stated it is encouraged by rebounding iron ore prices and the Australian dollar’s recent drop below parity with the US. “The Board is confident in the company’s ability to continue to generate strong cash flows for the medium term outlook in iron ore,” he said.

“And for that matter, the money we’re going to be requiring to reinvest in the business and as a result of each of those factors, the Board has resolved to continue to pay a three cent dividend.”

Despite the blowouts revenue for the year grew to $695 million, up from $618 million achieved in the previous financial year and as of June 30 had $417 million in cash in the bank.

Pilbara problems

Setting ambitious export targets, Atlas is aiming to ship more than 10 million tonnes per annum next financial year with cash operating costs between $49 and $53 a tonne.

But the company is yet to announce a port and rail infrastructure solutions which will be required to develop its Horizon projects.

Brinsden said Atlas isn’t feeling any pressure from investors to come up with a rail transport solution.

“We have a good understanding of the sorts of commercial terms that can secure an infrastructure solution,” he said.

“We are making material progress.”

But analysts concede the ambitious production targest can only be met with significant infrastructure investment.

Rail access has long been a sore point for Pilbara miners, and Fortescue Metals Group has previously failed to secure a deal to share access on rail assets owned by BHP Billiton and Rio Tinto.

Late last year FMG won a High Court appeal over access to Pilbara rail networks, eyeing off Rio’s Hammersly and Robe River lines, as well as BHP’s Goldsworthy and Mount Newman networks.

Atlas Iron has previously flagged constructing the Pilbara’s first multiuser rail line, in an infrastructure project that Brisden has said would require assistance from many customers to make it financially feasible.

“We’ve made no secret that Atlas is not really in a position to jus12

September 2013

AustralianMining

Despite blowouts for Atlas Iron, its revenue still grew to $695 million, up from the $618 million achieved in the previous year.

tify rail in its own rights, so I would say that if a network like Aurizon is going to be able to get up in the Pilbara then there’s no doubt in my mind it needs multiple customers,” Brinsden said.

“It’s fair to say we’ve got discussions going on with quite a few people and at the end of the day the Aurizon solution might very well constitute it: a fantastic solution for the Pilbara as a whole.”

Junior miners Brockman Mining and Flinders Mines in July signed a supply, infrastructure co-operation agreement in the Pilbara, saying they will work together on a transport solution that will get their product to market.

Brockman signed a three year agreement with Aurizon that will see the rail operator develop and operate rail and port infrastructure for the company’s two Pilbara iron ore projects.

Aurizon will operate all rail,

rolling stock and related infrastructure required by the mine projects and develop port facilities.

The two deals add to the mounting battle over transport infrastructure in the Pilbara.

Brockman has previously attempted to gain access to Fortescue Metals Group’s railway using third party access laws but according to The West Australian the bid has been bogged down by Western Australia’s regulatory process, forcing the miner to look at alternatives.

But according to WA Premier Colin Barnett the fight over rail access is holding projects up more than government red tape.

Barnett previously said resource companies fighting over sharing infrastructure is one of the biggest hurdles in keeping projects on time and budget.

He said the Department of State Development spent more time dealing with disputes between resource

Rail access has been one of the most contentious issues in the Pilbara.

companies than it did solving regulatory delays.

BHP Billiton and Rio Tinto’s railways in the region were built before WA introduced third party access laws.

Fortescue is attempting to sell down its stake in its railway, with some expecting Atlas Iron to negotiate a deal to access the infrastructure to accommodate the growth of its projects in the region.

Investors’ calls for Fortescue to reduce its $US10 billion debt are fuelling the company’s move to off­ load its minority interest in its port and rail assets which are expected to deliver $US3 billion to the company.

The sale, which was expected to be finalised by June 30, has been pushed to the September quarter.

When Brockman asked for access to its Pilbara rail line, the Fortescue owned TPI gave a floor cost of $73.4 million and a ceiling cost of $575.6 million.

Adding to the infrastructure debate in the region is Gina Rinehart’s Roy Hill Holdings, proposing to build its own railway rather than purchase access to someone else’s.

Brockman chief executive Russell Tipper said a memorandum of understanding with Flinders is a step forward.

“The potential aggregation of tonnages ensures a critical mass that could further enhance the economic viability of any proposed shared infrastructure solutions for junior iron ore miners in the Pilbara,” he said.

Flinders executive chairman Robert Kennedy said while the deal is nonbinding, its completion will benefit both companies.

“It is Flinders’ intention to work with Brockman towards a binding terms sheet that aggregates the Flinders product with the Brockman product,” he said in a statement. www.miningaustralia.com.au

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PILBARA SPOTLIGHT

POWER in the Pilbara The remoteness and harshness of the Pilbara presented a unique problem for one miner’s power needs. Alex Heber reports.

T

The harshness of the local environment was one of the major issues for Zinfra.

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he number of Australian greenfields projects is shrinking, primarily because of the risks associated with long exploration times, minimal infrastructure, and exploding costs.

So when Fortescue Metals Group decided to develop its $3.2 billion Solomon iron ore mine located in the Hammersley Rangers, west of Fortescue’s existing Cloudbreak and Christmas Creek mines, there was a lot to consider in terms on infrastructure development.

Namely a $1.2 billion port and loading facility, rail infrastructure which is expected to cost about $850 million and a further $850 million to develop the mine itself.

The Solomon Hub includes the Firetail operation which commenced mining activities late last year, transporting first ore in De-

cember and the Kings mine which is scheduled for completion later this year, lifting Solomon’s total production capacity to 60 million tonnes per annum.

“The Solomon project if you take both Firetail and Kings is the biggest greenfield iron ore project to start up in Australia, and maybe the world,” FMG Solomon project director Simon Carter said.

One of the key elements to mine site infrastructure is power generation, but it is also one of the most costly inputs, especially as the majority of Australian mines are located in remote locations and simply hooking up to the grid is not an option.

Diesel generated power is a solution some operations use, but this Continued on page 16 www.miningaustralia.com.au

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PILBARA SPOTLIGHT

Continued from page 14

can prove to be costly – both to the bottom line and to the environment.

Billing the Solomon Hub as a ‘next generation mine’, FMG moved to construct an innovative high voltage power transmission and distribution system; one reliable and strong enough to power two ore processing facilities, crushing hubs, kilometres of overland conveyors, a stock yard and train load-out facility.

FMG’s power infrastructure project manager Graham Martin explained providing power to the site was a complex project, costing $40 million and taking 11 months to complete.

Infrastructure developer Zinfra won the contract to design, supply, install, and construct high voltage overhead and underground transmission and distribution lines as well as three 132kV substations.

The tough working conditions on a greenfields site in the Pilbara which includes cyclones, poor soil conditions, soaring temperatures, and flooding are only exacerbated by the sheer scale of these types of projects.

“We’ve had bushfires, cyclones, storms, flooding, 50 degree days; it’s a veryAtough M 0 9 environment 1 3 _ 0 0 0 to _ Vwork A L in,it takes a special kind,” Zinfra senior

construction manager Tony Stewart said.

Supplying power to the site involved amongst other tasks, installing 177 poles, 54 kilometres of conductor, and laying 10 kilometres of underground cable.

Zinfra explained building flexibility into its plans was critical, especially as the mine’s scope of works continued to change throughout the roll-out phase.

Mine sites cannot afford to have power unexpectedly go down, interruptions to power supply directly impact a mine’s output and productivity, so unsurprising the biggest challenges Zinfra faced was ensuring its system was tough enough to withstand the heavy demands of a 24/7 operation and maximise the reliability of the network.

FMG identified Solomon has iron ore resource reserves of more than three billion tonnes, giving the operation a life of about 20 years for Firetail and Kings, and with a ramp up guideline of achieving zero to 60 million tonnes per annum in less than two years from breaking ground, infrastructure reliability is going to be imperative.

Zinfra group managing director Tony Beach said to deliver the project 1 the 2 0 company’s 1 3 - 0 8 - Solomon 2 1 T 1 0work: 1 2 : 3 5 + 1 0 : 0 0 force peaked at about 80 people.

They installed 177 poles, 54 kms of conductor, and 10 kms of underground cable.

“Our people and contractors had to work through the extreme nature of the project by keeping focussed and looking after each other,” Beach said.

Zinfra’s power project was key for FMG to achieve its milestones, including delivering power to the train load out enabling FMG to deliver early ore in December, Stewart explained.

Fortescue also enlisted an innovative hybrid approach to powering its Solomon Hub, signing a deal with GE Energy in 2011 for dual fuel aero­derivative gas turbine packages.

FMG’s director of development, Peter Meurs, has previously stated the miner needed “to rapidly develop our Solomon Hub and enable secure, low-cost production of iron ore for years to come, so we required a reliable and efficient power plant, GE was able to develop a fast track solution which met these demand16

September 2013

AustralianMining

ing requirements for the Hub”.

The turbines will start out fully diesel operated, but will later convert to gas when pipelines are available.

“These turbines have a unique capacity, as they can run on diesel and then convert to gas without needing a water injector to manage carbon emissions,” GE Energy’s sales director for power generation, Steve Graham has previously stated.

The LM6000s are known as aero­ derivative as the gas turbines were originally developed for aircraft engine technology.

The dry, low emissions turbines reportedly have a reliability rate of nearly 99 per cent, and are able to achieve full generating capacity within only ten minutes.

A key aspect of the turbines is that “it allows for continual development, so the operator can build out their power supply as demand grows at the site,” Graham explained. www.miningaustralia.com.au

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AM_0913_018.pdf

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PILBARA SPOTLIGHT

Working for Pilbara, in the Pilbara Fortescue’s goal of awarding $1bn worth of contracts to Indigenous firms has set a new benchmark in the Pilbara.

O

ne of the main problems faced in mining in the Pilbara is getting the workforce to the remote sites.

The cost of not only mining the deposit but getting people out there in the first place is a heavy burden for many miners.

And these fly in fly out workforces not only cost miners monetarily, they also change the perception of the company within the region and its place within the community.

This is why so many companies look to the local, regional, and Indigenous companies that not only operate in the area, but also support the region.

One miner, Fortescue Metals Group, while still utilising FIFO workforces, has made it a company goal to award a billion dollars in contracts to local Indigenous firms to support them and support the region.

Fortescue has now reached its set target of awarding more than $1 billion in contracts to Indigenous businesses by the end of 2013.

The miner says it passed the target after it awarded contracts worth around $500 million to six Aboriginal joint ventures owned by Native Title Groups for accommodation services at its camps in the Pilbara.

FMG originally set the goal in December 2011, and since that time has awarded 102 contracts and subcontracts to more than 50 businesses for its ‘Billion Opportunities’ program.

To qualify for the initiative, a company had to be at least one quarter Indigenous owned.

Of the contracts awarded, Fortescue says more than 80 per cent were Aboriginal businesses that were at least half Indigenous owned.

18

September 2013

Ownership structures were validated by KPMG. Nev Power, Fortescue’s CEO, said the company is extremely proud of the success of its initiative, having reached its goal six months ahead of schedule.

“I hope these contracts are just the first of many that these Aboriginal businesses secure and they each go on to become large, successful businesses providing jobs and opportunities to their communities and all of Australia,” Power said.

Brian Tucker, a member of the Nyiyaparli people, said a Fortescue contract was a major thing for the Morris Corporation and “the biggest thing that has happened to my people since mining began in the Pilbara”.

Tucker went on to say that “there has been a lot of frustration on our part trying to get to this point; we struggled and we felt that no one believed in us”.

“But we kept knocking on doors and now Fortescue has given us this opportunity.

“We want this to be the first of many we want to provide sustainable jobs to our people in this country and hopefully this will change communities, people’s lifestyles, and the environment.”

The Pilbara Aboriginal Contractors Association, which is a representative body for Aboriginal contractors and businesses in the region, was unavailable for further comment.

The milestone was welcomed by Fortescue chairman Andrew Forrest, who has set a number of goals within the company, and Australia, to aid Aboriginal people.

His company has previously set a number of employment goals for Indigenous workers as part of its Summit 300 initiative which

AustralianMining

Fortescue has reached its target of $1 billion worth of work to Indigenous companies.

was a commitment to create 50 000 sustainable jobs for Aborigines.

Andrew “Twiggy” Forrest has long been a supporter of indigenous training and employment and was a founder, along with James Packer, of the Generation One campaign, which aims to end the disparity between indigenous and non-indige-

nous Australians in a single generation.

Speaking about the milestone, Forrest stated that it is about creating sustainable employment.

“We could have given our traditional owners only money, but that would have been the easy option. Once that money is gone it is gone,” he said.

This is not the first time Forrest has taken this stance against what he perceives as simply ‘cash handouts’.

In 2011, instead of offer­ ing a lump sum payout to the Yindjibarndi people his company instead offered a $500 000 signing fee, $4 million per year in cash and $6.5 million in housing, jobs, training and business assistance. www.miningaustralia.com.au

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PILBARA SPOTLIGHT

Other miners such as BHP and Rio Tinto have also focused on working more closely with Indigenous people and companies in the Pilbara, creating better relationships.

However, some tradi- fare and will not help towns tional land owners rejected such as Roebourne which he this offer, saying they want says is currently in a state of more cash in exchange for “social breakdown”. the estimated $280 billion “We know what that does worth of iron ore the com- to communities and the heart pany expects to extract over of Fortescue, my own heart, the next four decades, de- just can’t be part of that,” he manding a minimum 2.5 per has previously stated. cent of the royalties from the “It’s easier to do it, but region. we won’t do it.”

AForrest M 0 9 1 said 3 _ 0cash 0 0 _payH A U - He1reiterated 2 0 1 3this, - 0stating 8 - 1 5 ments are akin to mining wel- that “we at Fortescue do the

www.miningaustralia.com.au

opposite of typical welfare policies: we teach a man to fish and give him a rod – they can feed themselves for a lifetime”.

“We gave our traditional owners something more important; we gave them the opportunity to start their own business, which means they can provide jobs for their T 1 6 own : 5 0people, : 1 0 +build 1 0 : ca0 0 pacity and build assets.

“This means that when their contracts with Fortescue are over they are left with a business that, hopefully, continues to grow and provide more opportunities.

“I am extremely proud of the commitment we made and proud of the Aboriginal businesses that grabbed these opportunities and ran with them.

“I hope it marks a turn-

ing point in this country’s relationship with Aboriginal people.”

In regards to directly employing and training Indigenous workers, as of June 30 the miner directly employed 461 Aboriginal people, which accounted for 12 per cent of its total workforce, with an additional 504 Abori­ gines employed by its contracting partners.

AustralianMining

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PILBARA SPOTLIGHT

Tracking future iron ore New technology is helping geologists predict where future Pilbara iron ore deposits lay. Vicky Validakis writes.

C

SIRO scientists have created their very own time machine with a new modelling tool that can simulate millions of years of landscape evolution and possibly reveal hidden mineral deposits.

The CSIRO-developed tool is a 3D modelling code tailored to solve problems related to basin and landscape evolution.

Using modelling technology, called LECODE, and iVEC supercomputer facilities, scientists have travelled back in time to pinpoint the exact moment when deposits formed in the iron-rich Hamersley province in Western Australia.

LECODE is a 3D-parallel surface processes forward The modelling allows the tracking of alluvial materials in the Pilbara from source to sink throughout modelling code designed to time, providing an accurate picture of the distribution of iron ore deposits in the region. calculate surface flow and solve erosion, transport and the CSIRO’s lead researcher create existing deposits, some the mineral deposits withsedimentation on a geologi- Guillaume Duclaux, said dating back 15 million years. in,” he explained. cal time-scale which offers this model for the first time “We simulated how “By exploring the matenew ways to better under- allows the tracking of allu- eros­ ion and water flow in- rial’s movement from the stand how sedimentary de- vial materials from source fluenced the transport of hill slopes to the valleys, we posits develop. to sink throughout time, the sediment over thousands to can predict the location of While alluvial sedimen- testing of existing geological millions of years, showing larger deposits hosted undertary deposits have an impor- models, and the accurate re- how the iron-rich soils were ground.” tant economic value because production the first order of carried from one place to anWith exploration budgof their capacity to host min- distribution of alluvial iron other to build sedimentary ets being cut as the mining eral resources like iron ore, ore deposits in an area of deposits,” Duclaux said. downturn takes hold across exploring the deposits can interest.

“Sedimentary (aka allu- the country, the new tool prove challenging as it inDuclaux said the study vial) deposits at the Earth’s could prove a major win for volves geomorphologic and has revealed potential loca- surface can host significant juniors and explorers with stratigraphic field studies as tions for hidden and unex- mineral resources, however the potential to reduce not well as costly expletory sur- plored iron ore deposits and exploring them is challeng- only the costs of exploration face sampling and drilling. although no new deposits ing because they are built but also the environmental AInMunveiling 0 9 1 3 _ the 0 0study 0 _ JatE A have - been 1 discovered 2 0 1 3 - 0yet, 8 -his 2 8 T 1 5 :layers 2 6 : of 0 5transported + 1 0 : 0 0 footprint of traditional drillfrom a recent iron ore conference, team have been able to re­ material that effectively hide ing activity.

“That’s one of the key applications that we are working at developing at the moment, to expose mineral deposits and not easily reachable by exploration geologists,” Duclaux said.

“Geologists and explorers could use the tool to make new mineral discoveries and it will reduce exploration costs and the environmental impacts associated with traditional drilling techniques.

Duclaux also pointed out that the tool could be used on other minerals such as gold and petroleum, signalling the possibility that new discoveries could be a step closer to realisation.

“Iron ore is one of the priorities but we could look at other commodities such as gold and we could extend our research a bit further offshore, looking at the North West Shelf, and potentially applying this tool to look at the formation of the big sedimentary basin which serve all the oil and gas resources in this region.”

Duclaux said the next step in the research would centre around the way the deposits formed, which is where his team would concentrate their research next.

“This research has brought up new questions around the processes that trigger the formation of this type of deposit, which we’re investigating next.”

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COAL SEAM GAS

The CSG debate:

UNDER PRESSURE As the great coal seam gas debate rages, Alex Heber speaks to both sides to find the truth.

T

he mere mention of coal seam gas in many parts of the country causes the eruption of polarising debate.

Anti-CSG campaigners argue there is not enough scientific evidence the practice won’t harm water tables, the environment and the health of those living around wells.

Operators in the sector have come up against strong opposition to the development of CSG, with protestors doing their best to halt or slow operations.

Weighing into the debate, Origin Energy chief executive Grant King recently said people aren’t open to the facts about CSG and many who are against it are circulating mistruths.

“The answers are simple – they are clear and straightforward,” King said.

“To the extent where people who are opposed, who are not interested in those answers because the basis of their opposition is not about those facts, that is where the greatest concern is – because they are then happy to propagate misrepresentations.

“My biggest concern is not the facts of the matter, it’s that there is clearly a small group of people who have an ideological opposition to what is happening and who don’t feel bound to that same level of facts that we do.”

So what are the facts?

CSG has seen $60 billion in investment injected into new Queensland projects and created about 10,000 jobs in the past year.

Queensland’s coal seam gas sector has experienced significant growth over the past 15 years and has previously been earmarked by the Queensland government as the “forefront of Queensland’s petroleum industry”.

But Queensland’s coal seam gas sector has about 20 years on New South Wales.

AGL upstream gas group general manager Mike Moraza told Australian Mining Queensland is by far the most mature coal seam gas market in this country.

By contrast Moraza explained 22

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“New South Wales has a very immature coal seam gas industry”.

“The very first and only coal seam gas project in this state is the [AGL] project at Camden which was the very first petroleum production lease issued in this state,” he said.

While fellow gas producer Santos has 600 individual landowner agreements in place in Queensland – a feat that “has taken time” CEO David Knox recently stated.

He said developing CSG in Queensland has required “the right language” and explained the New South Wales equivalent is “much younger in the process”.

“We need to give it time and allow it to build,” he said.

Santos exiting chairman Peter Coates recently said the company needs to do a better job to educate communities about the positive impacts of natural gas.

Managing Director of BG Group’s Australian subsidiary QGC, Derek Fisher, agrees saying the sector underestimated the power of misinformation distributed by opposition groups, including the “exaggerated” claims that the industry would contaminate the water tables and risk prime farming land.

“These past few years should cause the resource sector to seriously think about how it modernises

The CSG industry is under pressure in Australia as opposition rises to its operation.

its approach to public and policy advocacy, to constantly make and remake the case for our industry and the numerous advantages it is bringing to Australia,” Fisher said.

On the back foot

CSG producers have openly admitted to failing to accurately gauge the scale of the community uproar their activities would fuel and have seemingly been on the back foot dealing with genuine concerns.

“The reason we have the backlash is that we have is that people are afraid, worried and concerned about a range of issues that start at the highest water,” Moraza said.

He explained gas producers “have probably failed to appreciate … the challenges of this industry are not really technical in nature, they are soft and social in nature”.

“The way that the industry has evolved has been through technical proficiency and professionalism and now we have now come to a place where it’s the social skills and

There have been vocal protests against how the CSG industry operates in Australia.

community relations skills that are probably more important than the technical skills in order to make this industry successful,” he said.

Moraza said “misinformation is so rife that it has swayed public opinion” and recognised “operators have to very carefully understand and appreciate the concerns of communities, work through them, deal with them and resolve them”.

Vocal activists, including Lock the Gate have been incredibly mobile and active in voicing opposition, something Moraza was not willing to buy into.

“Those concerns have been created in peoples minds by very sophisticated activism. Sophisticated, fast moving, well resourced and by adopting a set of rules which we don’t play by,” he said.

“Those rules include the ability to put information out there that is emotional, sensational in nature, and a fact base which bares little resemblance to reality.

“That information has gone into the mainstream to such an extent that there is a perception and a view that this is a risky, dangerous, unhealthy industry, which is in fact the furthest from the truth.”

Moraza explained AGL has been operating a project in Camden for over 13 years, “where there has been no health impacts, no water contamination taking place, no fugitive emissions of any magnitude have been detected, so therefore the perception they’ve built up is far from reality, but the perception has driven public sentiment and in turn public policy”.

In July Apex Energy bore the brunt of anti-CSG sentiment driven public policy, being denied permission to drill 16 exploration wells Continued on page 24 www.miningaustralia.com.au

AM0913_000_MET

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MT309a Australian Mining Full Page Advertisement September 2013.indd 1

7/08/13 3:14 PM

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COAL SEAM GAS

Continued from page 22

within Illawarra water catchment areas.

The NSW Planning Assessment Commission (PAC) rejected the proposed drilling program, stating that more conclusive studies on the impact of CSG activities to drinking water were needed.

“We do have situations where governments respond to the community concerns, especially at the volume that it’s being articulated and they make policy decisions and announcements which unfortunately further drives community sentiment,” Moraza stated.

With this in mind, Moraza said AGL is working to build “trust, empathy and professionalism” in the areas it is working in, but with signs like “Go to Hell AGL”, it would seem they have a long way to go.

Lock the Gate president Drew Hutton told Australian Mining the organisation is “not opposed to CSG in principle but there needs to be an acceptance from all players, in particular governments, that there are no go zones”.

Those no go zones according to Hutton should include “good farmland and areas where there is vulnerable underground water, where there are important environmental areas and established urban areas”.

Earlier this year the New South Wales government enforced a two kilometer exclusion zone, meaning CSG operations could not occur within two kilometers of residential or critical industry areas.

The other big challenge faced by the industry is to correct a plethora of misinformation that has found its way out into the public domain about this industry, Moraza told Australian Mining.

“It’s upon us as an industry player, and with industry advocate APPEA, to go through information campaigns to explain and bring the community along on the development challenges,” he said.

He also recognised producers need to “demonstrate an ability to operate at world’s best practice”.

“We know if you do operate with world’s best practice all of the risks, all of the challenges that confront the industry can be managed by using the right techniques with trained professionals working in the industry, and that’s a conclusion that Mary O’Kane reached in her preliminary report,” he said.

Hutton hit back at O’Kane’s findings and operators saying “if the mafia operates on world’s best prac24

September 2013

AustralianMining

Monitoring groundwater has been one of the key concerns for CSG operators.

tice they’d be alright to, world’s best practice is a mile away from what’s going on at present in the coal seam gas industry and I don’t think it’s achievable”.

Regulation regimes

New South Wales has some of the strongest regulatory framework in the world when it comes to CSG but with mobile and vocal activists in the field, producers in the state face significant challenges if they continue to push ahead developing gas projects.

Moraza explained the importance of a robust regulatory regime which is able to provide oversight and support to the industry, but not advocacy, is a key take-home NSW can learn from established CSG sectors in other states.

“Governments provide regulation, approvals, they provide information, and they provide some stewardship of issues and issues management.

“In Queensland there is a sophisticated and deep experience be-

cause the oil and gas industry has been around for decades.

“So they’re a lot more regulated, they have a lot more bureaucrats that are able to deal with this industry.”

Fisher added to this.

“This is probably the most regulated industry in Australia and has had so much light shone on it that it’s sunburnt – but this has not been enough for our critics,” he said.

Queensland’s Curtis Island LNG project has more than 1500 state and federal environmental conditions, and at least another 8000 subconditions.

Vocal anti-CSG campaigner Hutton said Queensland’s LNG projects were given the go-ahead “before the community had a chance to assess the impacts, which is how they got a foothold”.

“The people in the rest of Australia, especially in NSW, have seen that happening out there and they don’t like it and that has reinforced their determination to make sure it doesn’t come into their area,” he said.

He also accused the industry of being “self regulated”.

“They’re [operators] are all trying to get in as quickly as they possibly can,” he said.

“The regulatory agencies are under resourced and underskilled, because all of ther skilled people go off and work for the industry, and there’s no political will in government to exercise the full regulatory requirements.

“This is a self-regulated industry,” he said.

Current forward estimates predict gas supply won’t meet demand by 2017.

“New South Wales will run out of natural gas,” Moraza said.

Victoria, South Australia, Western Australia, the Northern Territory and Queensland are all 100 per cent self sufficient when it comes to gas supply.

“We are an anomaly in the country of Australia because we import almost all – 95 per cent, of our natural gas from out of this state,” Moraza said.

“Both Queensland and Western Australia are already in the process of exporting large amounts of natural gas.

“The stand-out state in this country is New South Wales; it is not at all self sufficient and is almost entirely reliant on imports of gas from outside the borders.”

As global and national gas demands grow, there is not going to be enough gas to supply NSW, Moraza told Australian Mining.

“The other impact is the price of natural gas in New South Wales will rise and it will not have a downward pressure put on it by stimulating local production, it’s very simple, laws of supply and demand are formid­ able,” he said.

“No supply: prices go up. No supply: gas runs out.”

There are approximately 1.3 million gas connections in NSW, which without a steady gas supply will be hit by rising prices and already struggling sectors like manufacturing, a particularly heavy user, will endure more heartache.

The peak body for Australia’s oil and gas industry said millions of Australians support the CSG sector everyday, cooking with gas and using gas hot water systems and heaters.

On the face of it

Origin Energy chief Grant King says scientific evidence discredits claims being circulated by opposition groups.

Farmers have used CSG water to irrigate their crops in the Hunter Valley.

Continued on page 26 www.miningaustralia.com.au

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COAL SEAM GAS

Continued from page 24

“The two concerns with the water issue is contamination of reservoirs using toxic chemicals that will contaminate aquifers and the other is it will drain the Great Artesian Basin,” King said.

“It’s just factual that we don’t use toxic chemicals, so there cannot be contamination from fracking or drilling activities. It’s that simple.”

The extraction of CSG in Australia is quite different from the extraction of shale gas in the US which requires the use of different chemicals and involves more force to draw the gas out from harder rocks.

In Australia many of the seams which hold the gas are comprised of softer rock, which doesn’t require significant amounts of fracking when compared to the US. King explains recent CSIRO reports on the Great Artesian Basin show the impact of CSG production will be slight.

“If we aren’t willing to accept the work of the CSIRO and Queensland Water Resources Commission using science that is not controversial, I’m not sure where we go,” he said.

“People can make as many claims as they want but the science of Aaquifer modelling D_ AM B U L F EisBnot _ 1 contro3 . pd versial; it’s been done for years.”

The industry has managed to diminish its operating footprint at many sites.

The production of both con- where the aquifers are and where ventional and unconventional gas the company extracts the CSG from. has been happening for 40 years in “We’ve taken that to Canberra Queensland, the difference today is and had the expected level of interthe amount of larger projects being est at a political and technical level developed, The Australian reports. from the Coalition and the Govern“That increase in scale impacted ment, but not one Green politician more people and created more con- accepted our invitation to have a cerns and we might not have ad- look,” King said. dressed those concerns as quickly and as effectively as we should have,” Drinking the issues The loudest concern regarding CSG King said.

With this in mind, Origin set out activities is water including water to drill a 1500m well in the Surat availability, quality, and impact, by emissions, and rock f Basin, P a removed g e 1 the 2 4 / 0section, 1 / 1 3and , 2 closely : 4 2 followed PM cut it into lengths to demonstrate health impacts.

“Water tends to be the biggest concern,” Moraza said.

Hutton claims the opposition group’s main concerns which include water and fugitive emissions have not been resolved.

“The main criticisms we have made they have no answers to,” he said.

“They don’t know what the impact on underground water will be.”

AGL explained that it is committed to working transparently with government and communities to build a world class CSG sector in NSW. “AGL has developed an industry first water and air emissions testing program for its Camden Gas Project, planned and designed in partnership with the local community and industry experts,” the company said.

At its Gloucester gas project AGL is implementing a water quality testing program which will have a total of 45 monitoring bores, and also provided funding to the Gloucester Shire Council for an independent water scientist.

“The biggest risk that we spend a lot of time considering is the interference with aquifers, ground water in particular is our number one risk that we manage with well design, techniques and the way that we operate,” Moraza said.

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AustralianMining

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AM0713_000_AUS

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AM_0913_028.pdf

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AUSTRALIAN MINING ONSITE

The story I

n just over three years mid tier miner Sandfire Resources has managed to discover, drill-out, secure approvals, finance, build and launch the production phase of Western Australia’s largest copper mine.

“There are very few mining projects anywhere in the world today which can lay claim to having moved from discovery drill-hole to first sale in the space of just three years,” Sandfire’s chairman Derek La Ferla said.

“When the average length of time required to develop new resource projects is now seven to eight years, this is a truly remarkable achievement which has set new benchmarks for the mining industry in Western Australia.”

Officially opened by WA Premier Colin Barnett in August, the DeGrussa copper and gold mine is located about 900 kilometres north east of Perth.

“It’s a remarkable story of success,” Barnett said.

He explained WA is known for its iron ore mines and gas fields and new copper and uranium mines will broaden and diversify the state’s mining sector.

With an estimated mine life of seven years, and a workforce of about 400 people Sandfire is one of the few juniors that has managed to break through the challenging explorer phase.

“Back then [when DeGrussa was discovered] we had just been through a round of retrenchments and costcutting; our bank balance was dwindling; our share price was three or four cents; and there was virtually no market interest,”Karl Simich, managing director and Sandfire CEO said.

“We were just another junior explorer, struggling to survive.”

Sandfire Resources’ DeGrussa project has been one of the more surprising projects in Western Australia of late.

The high grade VMS copper gold mineralisation was discovered just four years ago, in mid-2009, with initial drilling returning some of the best intersections seen in the Western Australian mining industry in recent times – a single hole recorded 78.3 metres of high grade copper gold, with 53.2 metres at 17.3% copper and 2.5g/t of gold.

Speaking at the official mine 28

September 2013

AustralianMining

IN THE SAND Sandfire has officially opened Western Australia’s most exciting copper mine in years.

Alex Heber reports.

opening last month, Simich said “the DeGrussa discovery was the direct result of our commitment to keep exploring through a very challenging period in the market immediately after the global financial crisis – a period not unlike that which confronts many junior explorers today.

“While we acknowledge the good fortune we enjoyed, it was this commitment and persistence which ultimately enabled us to make the discovery which has propelled Sandfire into the ranks of Australia’s leading mid-tier miners, bringing positive financial and economic benefits to a wide range of stakeholders. This highlights the enormous value that can be created by a find such as this.”

Derek La Ferla, Sandfire’s chairman, added that this is a milestone for the miner.

“There are very few mining projects anywhere in the world today which can lay claim to having moved from discovery drill-hole to first sale in the space of just three years. When the average length of time required to develop new resource projects is now 7-8 years, this is a truly remarkable achievement which has set new benchmarks for the mining industry in Western Australia.”

Fast-forward to today and DeGrussa has already produced over 70,000 tonnes of copper metal and 50,000 ounces of gold for the 2013 financial year, mining out its opencut in April and completing its near-

surface direct shipping ore program at the end of the June quarter.

“It’s a big producer on a world scale,” Barnett said.

“For the local area this is a fantastic boost.

“We have a new mining project for what is an old mining province, new technology, new science, new people.

“I have no doubt this will signal a revival of a lot of mining exploration in what is a rich and diverse mining area,” he said.

The DSO program allowed for faster set up and development a Sandfire spokesperson told Australian Mining, saying the significant cash injection allowed Sandfire to push ahead developing its underground operations without having to refinance or take on more debt.

The miner achieved 900 metres progress in the underground development last month – its best month to date.

Underground operations are now ramping up to full production of 1.5 million tonnes per annum the financial year.

Speaking at the recent Diggers and Dealers event, managing director Karl Simich said the company expects to have completed 50 per cent of its planned underground development by mid 2014.

The DeGrussa mine has cost about $400 million to develop, including workers’ accommodation to

house 600 people, sealed roads, an airport, tailings dam, mill, declines, and a paste plant.

Sandfire has also recently announced its 2014 production guidance saying it expects it to be between 65,000 and 74,000 tonnes of copper concentrate and 45,000 ounces of gold.

“Keep crushing ore, keep producing copper concentrate and keep paying royalties,” Barnett said.

“Hopefully everyone makes money.”

Investment firm Deutsche Bank, analysts expect the miner’s biggest risks are related to ongoing operational costs, grades and recoveries.

Sandfire’s DeGrussa is also at risk of being susceptible to movement in copper and gold prices as well as the dance between the Australian and US dollar, Deutsche said.

But Simich said he is confident of copper’s global outlook, explaining it’s one of the most important industrial metals and will receive a boost from both continued Chinese growth and US economic recovery.

Deutsche analysts said the site shows potential for additional discoveries and further extensions to mine life.

The high-grade copper concentrates are exported out of Geraldton and Port Hedland on a road train, each road train takes four container loads and has an estimated cargo worth of about $170,000. www.miningaustralia.com.au

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DIGGERS & DEALERS WRAP

Digging into

DEALERS A spotlight on the week that was Diggers & Dealers.

Alex Heber writes.

T

he annual Diggers and Dealers Kalgoorlie forum has long been a barometer for industry sentiment, and this year was no different.

With the majority of exhibitors operating in the gold space, many expected a sombre, downbeat vibe; however delegates were greeted with high spirits, realism and a general keenness to get on with the job.

Not every industry can pride itself on such qualities, and being able to back up for a full schedule on two hours sleep after partying the night away in the local pubs.

Getting off to a flying start with US economist and former adviser to the Obama administration, Austan Goolsbee sent the conference mood A M0 9 1 3 _ 0 0 0 _ N O R 1 2 0 1 3 - 0 8 - 1 5 T 1 6 : 4 8 : 4 soaring 1 + 1 0with : 0 0his surprisingly upbeat The current state of gold was one of the main agenda points during Diggers. address, sparking a real sense of ca-

> CONCRETE TRaNspORTaTiON iN MiNiNG

maraderie amongst the Diggers.

In his address Goolsbee said he is positive about medium to longterm economic growth, explaining there is a case for optimism beyond the next 6 to 12 months.

“You will know when a real recovery begins when 25 year olds move out of their parents’ basement,” he said.

Goolsbee said he expects Chinese growth to continue and US recovery to eventuate if the Government moves towards boosting manufacturing.

Former chief executive of mid tier gold miner Alacer Gold, David Quinlivan said the falling gold price could see some of Alacer’s gold assets be put into care and maintenance if not sold.

He explained there was a wide-

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DIGGERS & DEALERS WRAP

spread view that the company’s Higginsville and South Kalgoorlie operations are a “drag” on its Turkish operations.

It’s open-pit Cöpler mine, located about 120 kilometres southwest of Erzincan in Turkey, last year produced 188,756 ounces of gold at a total cash cost of $375 an ounce.

Quinlivan said there have been about 12 interested groups looking at its Australian gold operations, due diligence processes have commenced, and an announcement will be made in the next month.

He indicated that if a favourable deal isn’t struck the Australian assets will likely run on a high grade mining regime then be placed into care and maintenance mode.

Since the address, Quinlivan has revealed he will step down from his position at Alacer.

Northern Star Resources was a stand out on day one, announcing earnings are up by 30 per cent, posting a record profit of $28.3 million on the back of a jump in gold production.

The operator of the Paulsens underground gold mine located in WA’s West Pilbara Mineral Fields, which Australian stockbroker Patersons labelled a “money making machine”, has managed to lower its cash cost by 5 per cent to $680 an ounce and deliver 88,614 ounces of gold.

Northern Star managing director Bill Beament also bucked the trend of downbeat gold miners, saying the gold price is “fantastic”.

“Two years ago we were jumping around in Kalgoorlie here singing its praises, and it’s the same price,” he said.

“At the end of the day it’s a very good gold price.”

But the real Diggers and Dealers doesn’t happen in the auditorium,

The daily presentations were packed, as mining directors got to the heart of the issue.

nor does it happen in the marquee, which is the largest in the Southern Hemisphere. The real Diggers and Dealers, the networking, deals, and debauchery takes place in Kalgoorlie’s local pubs.

Leading up to the 2013 event local skimpies were concerned their titty kitty’s wouldn’t be as plump as previous years and there was still accommodation and flights available the day before kick off, something that would’ve been unheard of just last year.

But if the skimpies were worried about their bottom line, they weren’t letting on, out in full force they managed to put on quite a show evoking a little rouge on the faces of even the most brutish patrons in the Palace and Exchange Hotels.

Day two saw the World Gold Council claim the resources supercycle is not done and dusted, with managing director of investment

Marcus Grubb claim the current drop is merely a readjustment.

“We don’t believe in a long term bear market for gold,” he said.

He explained gold demand is driven by wealth, demographics, savings rates, weddings and festivals and will continue to grow as Indian and Chinese wealth grows.

AHe M 0 explained 7 1 3 _ 0 0when 0 _ Bthe O G gold price fell in April, gold shops across

both China and India were stripped bear of every last piece of jewellery as consumers raced out.

The Gold Council estimates all gold ever mined equates to 174,000 tonnes, explaining it is a very scarce metal with 40 per cent of global gold supply coming from recycled metal.

Copper miner Sandfire Resources also addressed the Diggers contingent, following the official opening of its WA DeGrussa mine two days prior.

Still riding the high, managing director Karl Simich announced Sandfire expects to mine 1.5 million tonnes over the next financial year at DeGrussa and estimates 50 per cent of its planned underground development will be completed by mid 2014.

By day three faces are looking a little weary and the thought of a full presentation schedule as well as backing up for the gala dinner seems impossible.

But for an industry that can weather the full force of volatile commodity cycles, adverse weather conditions and Australia’s outback, a hangover is nothing if not a competition.

It’s the CAT 797 of events that scale 1 really 2 0does 1 3 -do0 the 6 - large 1 8 T 0 9 of : min0 7 : 1 2 + 1 0 : 0 0 ing justice.

est f erman ngineering

Mining heavyweights such as FMG’s Andrew ‘Twiggy’ Forrest were in attendance. www.miningaustralia.com.au

FOR YOUR NEAREST DEALER VISIT www.boge.net.au OR CONTACT 03 5940 3266 AustralianMining

September 2013

31

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GOLD

Northern Star shines BRIGHT There is still a bright light despite the gold downturn gloom. Alex Heber reports.

A

fter months of headlines screaming gold’s demise and countless gold miners posting less than average profits and production results, one miner has emerged from the doom and gloom to post record profits.

Up-and-coming gold producer Northern Star Resources has boosted its earnings by 30 per cent to post a record profit of $28.3 million on the back of a jump in gold production.

Operating the Paulsens underground gold mine located in WA’s West Pilbara Mineral Fields, it has managed to lower cash cost by 5 per cent to $680 an ounce and deliver 88,614 ounces of gold.

“We’ve got a very low cost base, we did our heavy lifting 12 to 18 months ago, we changed out the contractors, we went to all of our suppliers, we put those disciplines in our business,” managing director Bill Beament explained during a presentation at Diggers & Dealers.

He noted employee expectations have changed remarkably in the last few months, moving from a focus on wage amounts to job security.

“Most people feel that it’s worse than during the GFC, people are getting hit pretty hard, some companies are cutting pay, we’ve done a pay freeze, [however] we don’t think we need a pay cut at this point in time with the gold price,” Beament said. “[Although] we’re not immune to the downturn but had to make a few people redundant a few months ago which is hard.”

Upbeat in his Diggers 32

September 2013

and Dealers address, Beament explained the record profit came despite racking up $44 million in capital expenditure, including $10 million on exploration activities, investments, and a plant upgrade.

“We have delivered a record profit and a strong dividend while expanding our plant, growing our mine life and making the significant Titan discovery,” he said.

“We’ve done a lot of work developing the mine and opening up new production capability.”

Beament also bucked the trend of downbeat gold miners, saying the gold price is “fantastic”.

“Two years ago we were jumping around in Kalgoorlie here singing its praises, and it’s the same price,” he said.

“At the end of the day it’s a very good gold price.”

Beament said an increasing gold price for over a

Northern Star has remained optimistic against a perceived backdrop of gold’s decline.

decade has resulted in larger gold miners lowering their cut-off grades, which is why many say grades have declined.

“Majors will start lifting cut-off grades and all of a sudden they won’t be mining ounces that Barrick wanted to mine a couple of years ago, they’ll be mining more profitable ounces, they’ve got a few triggers they can pull,” he said.

Beament said political

uncertainty is cutting at the core of business and investment confidence saying the resource sector needs “a stable government that doesn’t tinker with things which is what has been happening for the last five years”.

“It’s very hard to run a business in resources when you’ve got a commodity price jumping up and down like a yo-yo, the last thing you want is a government that changes its mind and

The miner is pegging its hopes and fortunes against its Paulsens underground gold mine.

AustralianMining

changes its policy on the run, so if I can get some consistency in that it would be fantastic,” Beament said.

On his election policy wish list, Beament said support for the resource sector “would be nice”.

“To start supporting the resource sector and some exploration flowthrough schemes [from the incoming government] because what concerns me is we’ve found all the bulk of the ore bodies and unless we put that money back in we won’t have a resource sector in 25 or 30 years,” he said.

Beament said Northern Star’s future growth will come from further exploration efforts.

Falling gold prices have resulted in multiple job cuts in the gold mining industry, with prices slipping more than 20 per cent this year.

The struggling gold price has taken a number of casualties including Alacer Gold which said it cannot guarantee the future of its mines beyond the middle of 2014.

The miner which owns two operations in the Western Australian goldfields, including South Kalgoorlie operations and Higginsville, moved to write down. www.miningaustralia.com.au

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15/08/2013,

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AM0913_034.pdf

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34

30/08/13,

9:33:21

AM

GOLD

Over the

HEDGE

How has hedging affected gold miners?

Alex Heber reports.

T

raditionally hedging do) it can prove to be an anhas been a last resort, chor on profits. particularly in gold Asking analysts to premining which hasn’t had a dict the long term gold price healthy relationship with is like asking meteorologists the activity. to predict the long range Locking in gold produc- weather forecast, they all tion can potentially limit come up with different anprofits and if the commod- swers, which they all back ity experiences unexpected up with different reasons.

MA 0 8 1 3 _ 0 4 2 _ F E R 0 1 3 - 0 7 - 1 8 surges (which it can tend to At 1the 22013 Diggers and

Dealers forum in Kalgoorlie, the bullish World Gold Council, which is an industry funded body, predicted the resources super cycle is not over, saying the recent price drops are nothing but a short term readjustment.

World Gold Council managing director of investT1 5 : 1 6 : 0 9 + 1 0 : 0 0 ment Marcus Grubb ex-

plained gold demand is driven by wealth, demographics, savings rates, weddings and festivals and will continue to grow as Indian and Chinese wealth increases.

“We don’t believe in a long term bear market for gold,” Grubb said.

The gold bears say April’s gold price drop is just

the beginning, predicting the bullion market to continue to plummet to around $900 an ounce, a figure that would render much of Australia’s gold mines unviable.

Emerging gold producer Northern Star Resources managing director Bill Beament bucked the trend of downbeat gold miners at the Diggers and

P Find

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September 2013

AustralianMining

Evaluate

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AM0913_035.pdf

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35

30/08/13,

9:38:57

AM

GOLD

Dealers conference, saying the gold price is “fantastic”, tell­ ing Australian Mining “two years ago we were jumping around in Kalgoorlie here singing its praises, and it’s the same price”.

But as is the cyclical na­ ture of the resources sector, hedging is the new black, quietly shuffling its way back into producers’ strategies.

With uncertainty rife in the gold sector it is tempting to lock in gold prices as insur­ ance, just in case the bears are right. Especially for juniors and mid tier miners attempt­ ing to raise capital, financiers – including the big banks, are more likely to hand over the dollars if there is an insurance policy of sorts and stable cash flows are in place.

But hedging is a defensive mechanism and can prove to be an anchor if the gold bulls are on the money.

A recent J.P. Morgan Chase study reports 61 per cent of investors are against miners hedging gold prices.

Investors generally prefer to hold gold company shares with full exposure to any po­ tential rise in gold prices.

Moving to hedge gold production now can poten­ tially send a signal to the mar­ ket that the miner expects fur­ ther commodity price drops, and add momentum to gold’s decline.

April’s gold price drop has brought hedging back MA 0 8 1 3 _ 0 4 3 _ F E R 2 into the forefront of many

Hedging is a defensive mechanism and can be an anchor if gold bulls are on the money.

junior’s minds with some al­ ready locking in commodity hedging as insurance against volatile commodity prices.

In August WA gold min­ er Doray Minerals delivered its first 144 ounce bar from the company’s Andy Well gold project located new Meekatharra in Western Australia.

Doray managed to secure $55 million in debt funding from the Commonwealth Bank last year for project in­ frastructure development and raised an additional $43 mil­ lion in equity to cover mining and operational costs.

Managing director Allan 2 0 1 3 - 0 7 - 1 8 T1 5 : 1 Kelly told Australian Min-

ing if the company attempt­ ed to raise funding now it would’ve been “very diffi­ cult, probably impossible, our timing was good”.

Launching a gold min­ ing operation in the midst of a weaker bullion market, Doray locked in about half of its gold production or 45,000 ounces for the first 15 months at $1620 an ounce.

“We knew we would po­ tentially need a lot of debt for the project so we decided to put some hedging in place as insurance against the pro­ ject,” Kelly said.

Simon Tonkin, a senior resources analyst at Austral­ 6 : 4 6 + 1 0 : 0 0 ian stockbroking firm Pat­

ersons agrees, explaining more than 90 per cent of development companies are struggling to raise the capital necessary to get projects into production.

“Commodity prices are depressed and liquidity of funds has also dried up,” he stated.

Tonkin said many min­ ers are “now looking to build smaller scale projects so these capital requirements are low­ er and more fundable”.

When it comes to hedging production Tonkin said pric­ es are relatively low meaning producers are erring away from the idea.

“For the lucky few that

are in the position of looking to raise capital to build their projects hedging depends on the quality of the asset,” he said. Launching into produc­ tion at its DeGrussa copper mine, Sandfire Resources is one mid tier miner that was able to raise capital without hedging future production.

Sirius Resources is an­ other junior with a high grade asset, which Tonkin said probably won’t require hedging.

There appears to be a trend here – the higher qual­ ity the asset, the less likely fi­ nanciers will stipulate hedg­ ing is required.

“For those companies with average projects then yes hedging will probably be required,” Tonkin stated.

He explained financi­ ers tend to require a portion (usually around 30 per cent) of production to be hedged, with the rest at spot price.

“After all the financi­ ers would like their money back,” Tonkin stated.

“Part of the issue with hedging is that if you hedge and then prices increase then costs can follow and there can be a margin squeeze.

In 2009 investor’s confi­ dence was given a significant boos when the world’s larg­ est gold miner Barrick Gold announced it would unwind its remaining hedges.

“We saw most gold com­ panies unwind all hedging in the mid-2000s.”

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September 2013

35

AM_0913_036.pdf

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10:09:09

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POWER GENERATION

Shedding

LIGHT on the issue

As rising energy costs bite, some miners are looking for a greener solution.

Malavika Santhebennur reports.

M

ining companies are always looking for the most cost and energy efficient power solutions to lower energy costs. They also want to minimise the use of diesel generators to reduce their carbon footprint, but how can they do it in this era of high power costs?

Australian Mining spoke to solar photovoltaic (PV) manufacturer First Solar about how solar power is providing a compelling economic solution to a sector facing the challenges of high diesel fuel costs.

Vice president of First Solar AsiaPacific Jack Curtis said while the economic advantage of solar PV is not a revelation, the real challenge solar power faces is its technical integration with existing power generator systems.

“As you would be acutely aware, the main concern for mining companies is that their mine runs 24/7.

And obviously solar PV is reliant on the sun to generate power.

“What the gap has been to date is helping mining companies understand how solar PVs can integrate with existing power generation sources, which would provide an economic value without disrupting the continual supply of power to the mine,” Curtis said.

According to Curtis, the buzz around solar PV has been around for the past two to three years but has really accelerated in the last 12 to 18 months. Mines are now showing a proactive interest in incorporating solar PV on their sites.

The driver of this has been the cost of diesel fuel, which is now having a high enough impact on the mines’ profit and loss profile for miners to consider alternatives, Curtis said.

The carbon tax also drives miners to think about solar power. As Curtis pointed out, once solar PV is installed in a mine site there are no long-run fuel costs associated with it.

“And so what we’re starting to see is a number of companies that are 36

September 2013

AustralianMining

looking at it as a hedge against future increases in liquid fuel costs.

“I think the other key driver is mining companies are certainly looking to improve the environmental profile of their operations and obviously solar PV contributes to that as well,” he said.

There are also health issues related to the use of diesel fuel.

The World Health Organisation released a report linking diesel fumes with cancer, posing the same risk as second hand smoke.

A science panel welcomed the decision to change the status of diesel fumes from ‘probable carcinogen’ to carcinogen.

This is particularly pertinent to the mining industry, with workers exposed to large amounts of diesel fumes, especially in underground mines.

It’s on the same order of magnitude as passive smoking,” Kurt Straif, director of the International

Agency for Research on Cancer (IARC), said at the time.

“This could be another big push for countries to clean up exhaust from diesel engines.”

Solar system integration

The arguments for using solar power sound compelling but Curtis believes the real challenge is less about the technology and more about integrating an entire solar system, especially if miners are seeking to combine it with existing power generation equipment.

“We’re certainly not advocating that miners rip out the diesel generation sets and diesel reciprocators and replace it with a solar plant but what we need to occur is integration between the two solutions where solar PV can make a significant penetration into diesel,” Curtis said.

Curtis said First Solar can offer a “turnkey” solution, where they can carry out the construction and the integration of a solar plant.

Miners such as Galaxy Resources have already turned to solar energy to power sites.

He said miners want to work with a company that has a comprehensive understanding of not only the solar system but also the “complete hybrid package”.

First Solar has a fully vertically integrated capability, and the company has expertise in both the solar system and the diesel side of the equation.

Integrating the solar system with an existing power generator involves moderating the solar generation profile to ensure the diesel side can react to that on short notice so that there is continuous power supply.

The crux of the technical integration piece is to ensure the solar generation and diesel generation works together seamlessly so one can ramp down when the other ramps up and vice versa.

Many Australian mines are located in fairly hot conditions, especially in South Australia or Western Australia. First Solar’s solar panel has certain characteristics in its semiconductor materials that produces more energy during hot days compared to other crystalline panels.

Although hotter temperatures might lead to the gradual, temporary degradation of solar panels, First Solar’s panels are driven by a temperature co-efficient, which means the panels degrade a lot less over the course of a hot day.

“And what that translates to is, as it gets hotter you get more energy out of the panel over the course of the day,” Curtis said, “and what that ultimately translates to is a much better economic proposition for the mine.” www.miningaustralia.com.au

AM0813_000_ZIN

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AM_0913_038.pdf

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AM

POWER GENERATION

Mine safe generators A generator manufacturer has launched safer generators on the back of new legislation.

A

s mining regulations tighten and the industry along with government enforces higher standards, manufacturers have had to increase their standards.

As part of this movement, Aggreko has launched its new specialised fleet of generators at AIMEX, which are designed to meet new New South Wales Industry & Investment mining safety legislation.

These newly developed technical directives issued by NSW Industry & Investment department require standalone generators operating above ground and over 25 kW in size at all NSW mines (coal and metals) and extractives operations to comply with a number of recently implement electrical safety standards.

In line with these standards Aggreko upgraded its existing equipment to ensure compliance and a safer A change in legislation has led to a change in power on mine sites. working environment for miners.

George Whyte, the managing director for Aggreko’s Australia-Pa- safe’ fleet include the addition of a to electrical hazards that could be encific operation, safeAM 0 9 1 3 _explained 0 0 0 _ Athat P C these 1 number 2 0 1 of 3 internal - 0 8 - and 2 3 external T1 6 : 3 9 : 1 countered 8 + 1 0 : on 0 0site”. “safety enhancements to our ‘mine ty features as a preventative measure “In addition to the added safety

features, environmental safety has also been a priority; these newer ‘mine safe’ generator sets include a fully bunded wall which acts a secondary containment system to protect the environment from any chemical or fuel spills” he explained.

Aggreko has also focused on increasing availability of power.

“Often, a lack of power availability and hazardous environments go hand in hand. As a generator specialist, Aggreko prides itself on ensuring our fleet is engineered for supreme safety, particularly in industries like mining where people can be exposed to hazards in their day-to-day tasks” Whyte stated.

According to the company the ‘mine safe’ fleet is similar to Aggreko’s rental ‘rig safe’ fleet designed for offshore oil and gas platforms, adding that the Aggreko ‘mine safe’ fleet is designed specifically for mining customers and will be made available to all clientele across Australia, beginning with NSW, following the launch at AIMEX.

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www.miningaustralia.com.au

AM0613_000_FOX

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Edna May staff catch all the action with Foxtel iQ boxes in every room Edna May Gold Mine in Westonia, WA, (part of the Evolution Mining Group), is the first Australian mine to provide a Platinum Foxtel offering with an iQ box in every employee’s room. To help celebrate this, Foxtel brought some former AFL Superstars to Westonia.

Devon Roberts, Environmental and Community Superintendent for Edna May says the unique in-room facility goes great lengths to attracting and retaining staff and keeping them entertained and satisfied.

for everyone. Having an iQ box in-room also provides miners with the ability to pause, record and rewind live TV, so they have full control over what they watch and when, even if they are on shift work.

Roberts continued, “The next thing we knew, some of our favourite former Dockers and Eagles stars were coming out to the local Rec Complex and the mine site – not something that happens every day”.

“With Foxtel iQ in each room, all of the staff have been enjoying the extra entertainment, like they would at home.”

Foxtel understands that it’s important to keep FIFO miners entertained. An independent study has shown 50% of miners surveyed indicated access to pay TV is important in managing loneliness*.

So, to demonstrate Foxtel’s commitment to entertaining the mining industry and bringing better entertainment to Westonia, Foxtel brought some of WA’s favourite AFL stars to the town for a community BBQ and footy clinic.

The wider Westonia community were keen to get involved with many miners and locals playing alongside the pros in an AFL drill clinic. Roberts agrees, “The event was great, not just for employees but for the entire Westonia community.

The kids all got some signed gear, not to mention the equipment Foxtel donated to the local footy club.”

The new Platinum package provides staff with access to an even broader range of popular channels to watch after a hard day’s work including FOX FOOTY, helping staff keep up to date with their favourite team. And with Foxtel’s award-winning drama, news and dedicated lifestyle and documentary channels, there’s something

Foxtel’s new Platinum in-room package is now available at your mine, so to provide your staff with full control and the ultimate in entertainment visit www.foxtel.com.au/business or contact our Foxtel for Business Mining Specialist on 03 8325 3159.

Host Glen ‘Jako’ Jakovich joined six of the game’s greats, including former Eagles players Dean Kemp, Brett Heady, Ashley McIntosh and Michael Brennan and former Dockers players Peter Bell and Shaun McManus. * Research conducted by Consan Consulting on behalf of Foxtel in February-March 2013, amongst a sample of FIFO/DIDO workers in the Australian mining industry, including 400 miners and 98 managers.

Foxtel and some services not available to all premises. Foxtel marks are used under licence by Foxtel Management Pty Ltd.

AM0913_040.pdf

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MINESITE VEHICLES

Remote Rio REMEDIATION T

his year saw one of the of their dozers was the logical world’s largest mines option. experience a massive This is where an Australlandslip, as the Rio Tinto ian development on mining Kennecott’s Bingham county dozers was put in place, and mine partially collapsed, spill- through the clever technoling nearly 150 million tonnes ogy developed by Australian of dirt into the put. company Remote Control Luckily the mine knew it Technologies and installed on was coming and prepared ac- their Cat dozers supplied by cordingly.

Wheeler Machinery Rio was However a disaster of this able to start dealing with the scale has never before been aftermath of the landslip. dealt with in the industry, RCT was able to design and required an innovative and manufacture three dozer approach to deal with the remote interfaces and four clean up. remote kits to suit the Cater- company to reduce its normal The safety of Rio Tinto’s pillar D8T dozers used at the deployment lead time from employees was of utmost im- mine site together with spare ten weeks to just three, to portance to the mining op- remotes and support parts, deliver a remote control soeration, and dozer operators prepare the necessary docu- lution to the disaster struck could not safely work in the mentation and ship the equip- mine. disaster area. ment, all in a very small time It seems incomprehenHowever, while the clear- frame. sible that the WA company ing of the 98 million cubic According to RCT’s man- was faster to react than some metres of rock and dirt was aging director, Bob Muir- local suppliers, but accordan Aunprecedented challenge D _ A MME R A P R _ 1 3 head, . p d it f took P a ag “whatever e 1 1 it 1 / 0ing 3 /to1 Wheeler, 3 , 1 0 who : 3 9 pro: 1 5 for the mine – remote control takes” approach, pushing the vided the remote dozers for

An Australian innovation is helping Rio clean up its Kennecott crisis. the mining project, RCT was both faster to react and had better technical support.

Once on site, installation, commissioning and training were completed in three weeks by the two man RCT team, equipping Wheeler and the mining company’s dozer operators with the skills necessary clear A M to AE D T the landslide in the safest manner possible

so they could resume normal mining operations and staff could get back to their work.

“It was easy to work with the RCT team, the implementation went seamlessly and they were keen to share their knowledge and experience during the training, making us feel confident with the operation of the equipment,” Wheeler’s Greg Evans said.

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AM_0913_042.pdf

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MINESITE VEHICLES

Keeping a-head with technology Tunnel boring machines are now being utilised in drift excavation. Malavika Santhebennur writes.

S

tability, safety and speed are key factors when excavating tunnels at a mine site. While road headers are a popular choice for the job, they may not use as much stable ground support required for drift excavation.

In what is a first for the Queensland coal industry, a coal mine in Central Queensland will be using a tunnel boring machine (TBM) for drift excavation.

Mining and engineering services company Redpath will be supplying the TBM for Anglo American’s Grosvenor coal mine in the Bowen Basin.

The eight metre diameter Earth Pressure Balance (EPB) TBM was manufactured by Robbins and will be used on the coal mine to excavate two drifts instead of the traditional method of using a road header.

Redpath launched a dedicated Australian coal division in 2011.

The announcement of the new division coincided with the company’s first coal mining contract following its work on the Rio Tinto Kestrel Mine Extension project near Emerald, Queensland.

According to Redpath’s general manager of coal Gavin Ramage, TBM offers a safer, quicker and more stable excavation option.

“The tunnel boring machine is expected to excavate drifts at least three times faster than a road header, which provides much quicker access to coal,” Ramage said.

“There are also a number of safety benefits associated with using the TBM, mainly from the highly stable and durable ground support required, which has a 50 year life expectancy, as opposed to the less stable support used for a road header.”

Using the TBM removes the need to rehabilitate the drift support every 10 years as the TBM support has a life expectancy five times that which is laid for the road header.

Ramage referred to an incident Anglo American’s Moranbah North mine, where a roof collapsed over its conveyor drift in 2011.

All operations had to stop at the mine until the rubble could be cleared and the conveyor drift repaired.

Ramage said fully segmented lining will diminish the likelihood of any collapse or ground support rehabilitation or issues once the excavation’s conveyor belts are installed.

The TBM excavates and supports at the same time.

Ramage said the option to use TBM on the Grosvenor coal site was proposed in Redpath’s tender about a year and a half ago.

While the traditional excavation method of the road header was the first option, Redpath proposed the TBM as something to examine.

“The (Grosvenor) project has some poor ground conditions for the first 50 metres vertically. This was thought to be a better solution both in excavating the drifts and for long term stability,” Ramage told Australian Mining.

The ground support needed when using a TBM is akin to that of crosscity tunnels, which is stable and longterm.

Ramage said typical ground support regimes have a used-by date.

The bolts and mesh system may have a lifespan of 10-15 years and once it reaches its use-by date, miners will need to rehabilitate it.

This can be expensive, disruptive, and may cause operational

The machine will be installed at Anglo American’s Grosvenor coal mine in Queensland.

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Tunnel borers change the way in which ground support is used and replaced.

problems in the drifts or accesses.

With TBM, Ramage said the ground support regime is replaced with full segmental lining instead of the traditional bolts and mesh.

This means it will be a safer environment for the teams of workers who access the drift and operate the conveyor system.

It removes people away from hazardous areas during excavation on poor ground, Ramage said.

Anglo American’s Grosvenor project manager Glenn Tonkin said the company was excited to be pioneering the tunnelling method to build the five million tonne a year Grosvenor mine.

The company’s board approved its coking coal mine in December 2011. Located just south of the company’s Moranbah North coal mine, it targets the same Goonyella Middle coal seam as the Moranbah mine.

Anglo will spend approximately $US1.7 billion on the mine.

“The $40 million earth pressure

balance machine is under assembly on site and will be ready to break ground next month,” Tonkin said.

“The innovative TBM tunnelling method will allow us to reach the coal seam by December this year, bringing us that step closer to longwall production in late 2016.”

Redpath is looking to start cutting and excavating the first drift at the end of October.

The longwall operation has a mine life of around 26 years.

Construction on the Grosvenor project started in July 2012. It will need more than 3,000,000 cubic metres of earthmoving and more than 13,000 cubic metres of reinforced concrete.

Redpath recently brought over the world’s most powerful raise drill to South Australia to begin work on its first job in Australia.

The raise drill was designed for underground and civil projects where underground access is available. www.miningaustralia.com.au

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AM0913_044.pdf

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9:24:32

AM

MINESITE VEHICLES

A new player in the game Another international mining machinery company is starting to make in-roads into Australia.

D

espite the mining slowdown, Australia is still seeing more mining vehicle manufacturers make in-roads into the nation.

Earlier this year BelAZ, one of the world’s largest mining haul truck manufacturers, officially launched its latest trucks into Australia, stepping into a space in which it has never played before.

Now a German firm is also taking the same route.

GHH Australia, a subsidiary of GHH Fahrzeuge and part of the wider Schmidt Kranz holding group, has opened an office in Australia to supply its range of GHH loaders, dump trucks and specialty vehicles.

On top off this it will also provide a range of drilling rigs manufactured by its sister company Mine GHH is releasing Australian spec LHDs, the FM2.8MPD, for the Australian market.

Master.

Although it has never had a extended its range from its first few Australian on the back of recent footprint like this in Australia be- mining focused vehicles into diesel innovations such as a hybrid drive fore, the company states that since and electric powered loaders, diesel train that uses both a hydrostatic it started manufacturing LHDs and powered dump trucks, scalers, and and hydrodynamic drive system that mine supplied mixers. while reducing wastA D trucks _ A M TitR has E2 F E B _ 1 more 2 . p d concrete f Pa g e 1 1 0 / 0 1 / 1 2 , combines 1 1 : 5 1them AM than 3700 unites worldwide, and 1/5/12 It 8:26:42 stated that it is moving into ed power whilst still using standard EmulsionPlant122x210Ad.pdf PM

axles and proven braking system.

This combination provides fuel savings of up to 20 per cent, GHH says, allowing mining companies to focus more on shaving back their cost base.

As part of its move into Australia GHH, together with Mine Master, will release the Australian spec FM2.8MPD – a multi-purpose twin boom drill capable of scaling, face, and roof drilling, as well as some bolting and meshing rigs.

Its current range includes machines with hydrostatic drives and CANBUS systems as well as standard hydrodynamic systems very few electronic components.

According to GHH its loaders come with payloads ranging from three to 20 tonnes while its dump trucks range in size from 15 to 55 tonnes, while its dedicated 30 tonne telescopic and mixer trucks have capacities of five cubic metres.

GHH says it also has the ability to customise loaders and trucks to suit specific site needs.

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AustralianMining

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2013-03-25T09:14:21+11:00

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AM_0913_046.pdf

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MINESITE VEHICLES

Cutting vehicle fire risks With the high potential for fire on vehicles, being prepared can save lives.

W

hen operating heavy mining vehicles, no matter where on site, first-class safety systems and procedures are essential.

Without proper fire protection, workers can be exposed to extreme dangers, leading to potential loss of life, as well as equipment and assets.

And a burnt out truck causes a serious amount of unnecessary downtimes.

With this in mind fire protection specialist Wormald is urging mine site management and mine vehicle operators to be aware of the risks and to ensure fire suppression systems are installed on all mining vehicles.

Steve Oxley Wormald’s national product manager for Vehicle Fire Suppression Systems A M 0 explained 9 1 3 _ 0that 0 0 “min_ RHI ing sites see a vast number

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September 2013

The foam water spray.

Vehicle fires are a real and present danger on all mining vehicles.

of heavy vehicles, plant and equipment being operated every day, and these heavy vehicles have significant ignition/heat sources such as energised wiring and turbochargers. With the potential for onboard goods to add to the fuel load, it’s clear that the risk of a fire while in operation - can 1 be2high.

0 1 3 - 0 8 - 2 3 “It is essential that ve-

hicles are fitted with a suitable fire suppression solution that is best suited to their fire risk. Heavy vehicle operators must also understand the risks involved in their role and how to ensure their safety should a fire break out in or on the vehicle they are operating”, Oxley added T 1 To 6 : minimise 5 2 : 5 4this + 1 danger 0 : 0 0 Wormald has developed a

AustralianMining

range of vehicle fire suppression systems (VFSS), for different types of mining vehicles.

The system provides early detection and warning to allow time for the driver to safely evacuate, while at the same time quickly suppressing the fire to minimise damage to the vehicle.

The Wormald Foam Wa-

ter Spray VFSS consists of high pressure, small droplet nozzles which discharge a continuous stream of foam water spray at high risk areas, such as engine and transmission compartments, and hydraulic areas.

The system utilises the fire suppressing and containment features of Aqueous Film Forming Foam (AFFF).

The ANSUL A-101 Dry Chemical Vehicle Fire Suppression System discharges a multipurpose dry chemical agent known as Foray into the risk area to suppress the fire.

These systems can be designed to flood entire volumes with dry chemical agent or aim at specific high-hazard areas. In accordance with AS 5062, Wormald provides a fire risk assessment process which assists in determining the most appropriate system to use for each vehicle application.

www.miningaustralia.com.au

AM0713_000_HIT

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AM_0913_048.pdf

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AM

SAFETY

Up in SMOKE New testing methods are cutting some of the drug dangers on site.

I

n recent times Australia has become a destination for purveyors of Synthetic Marijuana a vegetable like material, commonly known as Kronic, sprayed with dangerous chemicals and later smoked.

Producing a similar or mimic effect to use of marijuana, it is now considered a dangerous product and responsible for serious psychosis with potential for prolonged effects.

The two main chemicals JWH 018 and JWH 073 in various forms and five other substances are sprayed on to a vegetable like material, sometimes referred to as “Herbal Incense�.

Interestingly manufacturers of the substance continually change and alter the contents with levels of JWH 018 sometimes varying from 0.2% to 3% and other substances making the substance difficult to detect.

Recent studies indicate that use of Kronic is causing amongst other conditions heart attacks, convulsions, paranoia, anxiety, racing heartbeat, elevated blood pressure and vomiting.

Since 2011 West Australia Government have made the substance illegal other states are following and banning the substance.

The substances found in Kronic are banned from importation in Australia. Final ratification on the illegality of the substance is yet to be reached.

Sadly Kronic has become the AM 5 1 3 _ 0 0 _ and S P is I .used pd drug of0 choice for0 many

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AustralianMining

in Australian workplaces, possibly due to the existing uncertainty surrounding the legal status.

Whilst considered a banned substance Kronic is not listed in Australian Standards 4308 : 2008 like Marijuana, Opiates, Amphetamine, Methamphetamine, Cocaine and Benzodiazepines.

Until recently (early 2013) Kronic was unable to be detected Onsite using conventional Immunoassay urine drug screening devices for the detection of THC/marijuana.

The only option available for employers was by Q trap Confirmatory testing using LC/MS – MS (liquid chromatography and mass spectrometry in tandem) method.

Completely different from conventional GC/MS (gas chromatography and mass Spectrometry Confirmatory) testing.

Proving to be an expensive option with costs ranging from $100 to $120 per test. Coupled with the lag time for results notification depend- a Negative result, further testing for ent upon the location and proximity Kronic are able to use the same colto Confirmatory Laboratory. lected specimen for Kronic testing.

However one company is now According to the company a testoffering a cost effective viable second er simply has to remove the screw option. cap from the Split Cup and place A simple easy to use on-site the Kronic kit into the specimen for Urine based test.

30 seconds and remove and lay flat.

Following a conventional urine With slightly longer result times 5 to drug screen, using the LaneWorkSafe 6 minutes, than the Split Cup a C or f Split P aSpecimen g e 1 Cup, 1 5 which / 0 4 produces / 1 3 , 9 Control : 4 4 : line 3 1 will AM A E Sindicating T appear,

the kit is working correctly.

For Negative results a line will appear alongside the letter T indicating a clear Kronic free specimen.

As a presumptive result, minimising the number of specimens requiring Confirmatory testing, the cost effectiveness is considerable.

At the present time there is no Saliva device available for the detection of Kronic.

www.miningaustralia.com.au

AM0913_000_CHA

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2013-08-27T15:27:47+10:00

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AM0913_050.pdf

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SAFETY

Staying on message A new app is making safety simpler.

S

afety is everyone’s business.

Ensuring that every Australian worker is working in the safest environment possible is critical.

But with the levels of red tape around reporting structures, many companies are finding reporting more difficult.

With over 2,000 pages of legislation many business owners spend a majority of their time concentrating on meeting the red-tape regulatory requirements rather than focusing on providing a safe work environment.

In an attempt to demystify the process and give miners back time, an Australian company has developed a new application that makes the whole system as easy as ticking a box.

Systems on a Shoestring (SOAS) and they have recently launched Australia’s first workplace safety mobile app.

SOAS director Emma Bentton told Australian Mining that “the Simple Safety app is the only step-bystep system in Australia developed The simple checklist app encourages people to be more engaged in safey, SOAS director Emma Bentton stated. to help businesses become compliant with Work Health and Safety legisla- million plus SMEs operating in Aus- pre-loaded, so users can simply just ance companies give adiscount. tion while on the go”. tralia and is designed to give compa- check it off,” Bentton said.

She added that by making it a She explained that they developed nies more time to focus on the runImportantly, as it already cus- downloadable phone app it helps to the app to give business owners the ning of their business. tomised it helps to cut the process enable Gen Y operators to be more confidence to identify the hazards in The system itself has nine ap- down from weeks to minutes, Bent- engaged with safety, “it makes it their workplace and implement ad- plications for operators to choose ton explaining that it takes about more accessible”. equate controls to manage these risks. from that have pre-set processes in five minutes per job to enter the safe Bentton went on to say that the “It makes auditing easier as it place for different applications such work statements and also demon- app is very simple to use “and proprovides a customised, single sys- as electricians and carpenters. strates that a company has imple- vides a very cost effective of encourtem.”

“It has 90 per cent of hazards mented a risk based system at their aging people to be part of the safety A M0 9 1 3 _ 0 0 0 _ C A V 2 0 1 3 - 0 8 - 1 5 T1 6 : 5 3 : 1 8 + 1 0 : 0 0 The app is tailored to the two 1 encountered in industry already business, which in turns sees insur- process.

Four decades of innovation and efficiency.

Switch on the power of innovation Cavotec manufactures innovative automation technologies for global industrial groups such as Atlas Copco, BHP Billiton, Pilbara Iron, Rambooms, Robbins, Sandvik and ThyssenKrupp.

With a track record spanning some forty years, Cavotec systems are used at applications worldwide to control equipment such as mobile cranes, tower cranes, crusher machines and TBMs. All Cavotec equipment is certified to applicable international safety standards such as ATEX and IEC.

Cavotec Australia (Perth) 24 Garnet Way, Maddington, WA 6109, Australia – Telephone: +61 (0) 8 9452 0044 – E-mail: info.au@cavotec.com www.cavotec.com

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Inspired Engineering

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AM0913_000_LAD - 1 2013-08-26T09:39:00+10:00 Aust Mining Sept_Layout 1 21/08/13 11:55 AM Page 1

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AM_0913_052.pdf

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THORIUM

Thorium: Australia’s new

NUCLEAR POWER?

In the search for more sustainable energy, Australia may take a nuclear lead.

Leslie Kemeny writes.

T

horium is a tantalising power source for future decades and generations.

It is far more plentiful in nature then uranium. This would ensure a sustainable fuel cycle for thousands of years on a planet where a population of over nine billion is anticipated by 2050.

It is fertile – not fissile – and can only be used in conjunction with fissile materials as a nuclear fuel.

Like uranium, because of its energy density, it is far more cost effective than the hydro carbons and the so called “renewables”.

However a lot more basic physics and economic analysis is needed before commercial thorium based reactors become available.

The lead in this area is currently held by India, China and Japan although the U.S.A., Canada, U.K. and Germany have experimented with thorium fuel over the past fifty years.

I well remember my early visits to India and Bangladesh in the 1970s to lecture on nuclear power and to discuss the technology of the potential thorium cycle at a time when that resource was being discovered in the monazite beach sands, of The Bay of Bengal (see Table 1).

Thorium (Th-232) is not of itself fissile and so is not directly usable 52

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in thermal neutron reactors – in this regard it is very similar to uranium-238.

However, it is ‘fertile’ and upon absorbing a neutron will transmute to uranium-233 (U-233), which is an excellent fissile fuel material.

Thorium fuel concepts therefore require that Th-232 is first irradiated in a reactor to provide the necessary neutron dosing.

The U-233 that is produced can either be chemically separated from the parent thorium fuel and recycled into new fuel, or the U-233 may be usable ‘in-situ’ in the same fuel form.

The most common source of thorium is the rare earth phosphate mineral, monazite, which contains up to about 12 per cent thorium phosphate, but only 6-7 per cent on average.

Monazite is found in igneous and other rocks but the richest concentrations are in placer deposits, concentrated by wave and current action with other heavy minerals.

World monazite resources are estimated to be about 12 million tonnes, two-thirds of which are in heavy mineral sands deposits on the south and east coasts of India. There are substantial deposits in several other countries (see table below).

Thorium recovery from monazite usually involves leaching with so-

dium hydroxide at 140°C followed by a complex process to precipitate pure ThO2.

Thorite (ThSiO4) is another common mineral. A large vein deposit of thorium and rare earth metals is to be found in Idaho. For Australian rare earths miners, thorium, at the present, time remain mainly a nuisance. Because of its intimate as-

ESTIMATED WORLD THORIUM RESOURCES Country Tonnes India 846,000 Turkey 744,000 Brazil 606,000 Australia 521,000 USA 434,000 Egypt 380,000 Norway 320,000 Venezuela 300,000 Canada 172,000 Russia 155,000 South Africa 148,000 China 100,000 Greenland 86,000 Finland 60,000 Sweden 50,000 Kazakhstan 50,000 Other countries 413,000 World Total 5,385,000

% of total 16 14 11 10 8 7 6 6 3 3 3 2 2 1 1 1 6

sociation with the rare earths and its mild radioactivity, rare-earths transport and extraction can become yet another focal point and issue for green pseudo-science and political activism for special interest groups!

This author has long specialised in uranium, thorium and rare earths recovery from many sources ranging from sea-water to monazite. He has patented plant designs which can effect high purity separations based on ion-exchange chromatography, in parallel continuous streams.

Thorium is a naturally-occurring, slightly radioactive metal discovered in 1828 by the Swedish chemist Jons Jakob Berzelius, who named it after Thor, the Norse god of thunder.

It is found in small amounts in most rocks and soils, where it is about three times more abundant than uranium.

Soil commonly contains an average of around 6 parts per million (ppm) of thorium. Thorium exists in nature in a single isotopic form – Th-232 – which decays very slowly (its half-life is about three times the age of the earth). The decay chains of natural thorium and uranium gives rise to minute traces of Th-228, Th-230 and Th-234, but the presence of these in mass terms is negligible.

Continued on page 54 www.miningaustralia.com.au

AM0913_000_TYC

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Large Vehicles Large Risks With the mix of heat, flammable liquids, fumes and electrics in an enclosed engine compartment, the potential for a furious fire is high.

Wormald速 offers a range of vehicle fire suppression system solutions, including foam water spray systems, dry chemical and dual agent systems. Our end-to-end solutions are designed to rapidly suppress fire in all kinds of mining and quarrying vehicles.

Call your Wormald Vehicle Fire Specialist on 1300 556 015 or visit wormald.com.au/vehicles

A Tyco Business

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THORIUM

Continued from page 52

When pure, thorium is a silvery white metal that retains its lustre for several months. However, thorium slowly tarnishes in air, becoming grey and eventually black. Thorium oxide (ThO2), also called thoria, has one of the highest melting points of all oxides (3300°C). When heated in air, thorium metal turnings ignite and burn brilliantly with white light.

Because of these properties, thorium has found applications in light bulb elements, lantern mantles, arc-light lamps, welding electrodes and heatresistant ceramics. Glass containing thorium oxide has a high refractive index and dispersion and is used in high quality lenses for cameras and scientific instruments.

There are at least seven reactor types under development for the How a thorium reactor operates, generating baseload power. commercial utilisation of thorium fuel. The undersigned has been most mixed with plutonium or enriched 1. Pressurised heavy water reactors closely connected with the two most uranium, coated with pyrolytic (PHWRs) fuelled by natural uraadvanced concepts – the Pressurised carbon and silicon carbide layers nium, plus light water reactors, Heavy Water Reactor (PHWR) and which retain fission gases. The fuel producing plutonium. the High Temperature Gas Cooled particles are embedded in a graph- 2.

Fast breeder reactors (FBRs) usReactor (HTGCR). ite matrix that is very stable at high ing plutonium-based fuel to breed Heavy Water Reactors (PHWRs) temperatures. Such fuels can be irraU-233 from thorium. The blanket are very well suited for thorium fuels diated for very long periods and thus around the core will have uranium due to their physical and mechanical deeply burn to exploit their original as well as thorium, so that further characteristics. They have an excel- fissile charge. Thorium fuels can be plutonium (particularly Pu-239) is lent neutron economy (their low designed for both ‘pebble bed’ and produced as well as the U-233. parasitic neutron absorption means ‘prismatic’ HTR fuel varieties.

3.

Advanced heavy water reactors more neutrons can be absorbed by The other reactor types which may (AHWRs) burn the U-233 and thorium to produce useful U-233). one day utilise thorium as fuel may this plutonium with thorium, getThey have a slightly faster average ultimately prove uneconomic and are ting about 75% of their power fission neutron energy which favours still speculative. They include molten from the thorium. The used fuel conversion to U-233. Finally they salt systems, fast breeder reactors and will then be reprocessed to recovhave a flexible on-line refuelling ca- accelerator driven reactors. We coner fissile materials for recycling. pability. Furthermore, heavy water clude this review by studying the reacThis Indian programme has reactors (especially the Canadian tion of the two countries to thorium’s moved from aiming to be sustained Candu) are well established and have as yet untapped energy potential. simply with thorium to one ‘driven’ a widely-deployed commercial techWith huge resources of easily-ac- with the addition of further fissile nology for which there is extensive cessible thorium and relatively little plutonium from the FBR fleet, to licensing experience. uranium, India has made utilisation give greater efficiency. In 2009, deHigh-Temperature Gas-Cooled of thorium for large-scale energy spite the relaxation of trade restricReactors (H.T.G.C.) are well suited production a major goal in its nu- tions on uranium, India reaffirmed forAthoriumtheI form M 0 9 1 3based _ 0 0fuels 0 _ in QU 1 clear 2 0power 1 3 - programme, 0 8 - 2 6 T 1utilising 1 : 1 6 a: 1 its 4 +intention 1 0 : 0 to 0 proceed with develof robust coated particles of thorium three-stage concept: oping the thorium cycle.

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A 500 MWe prototype FBR under construction in Kalpakkam is designed to produce plutonium to enable AHWRs to breed U-233 from thorium. India is focusing and prioritising the construction and commissioning of its sodium-cooled fast reactor fleet in which it will breed the required plutonium. This will take another 15-20 years and so it will still be some time before India is using thorium energy to a significant extent.

A different attitude prevails in, countries with a well established nuclear power programmes and with a society reasonably aware of its inherent safety, energy security and ability to offset greenhouse gas production in a cost-effective manner. These will proceed with caution into developing thorium systems. Consider the advice of the United Kingdom’s National Nuclear Laboratory (NNL) published in 2010.

“NNL believes that the thorium fuel cycle does not currently have a role to play in the UK context, other than its potential application for plutonium management in medium to long term. Depending on the indigenous thorium reserves, thorium fuel is likely to have only a limited role internationally for some years ahead. The technology is innovative, although technically immature and currently not of interest to the utilities. Representing significant financial investment and risk without notable benefits. In many cases, the benefits of the thorium fuel cycle have been overstated.” *Professor Leslie G Kemeny is the Australian Foundation member of the International Nuclear Energy Academy. He is an internationally acknowledged expert in nuclear power plant design, safety and siting. Kemeny is a Fellow of Engineers Australia and the Australian Institute of Energy. He is also a Founding Member of the Australian Nuclear Association.

www.miningaustralia.com.au

AM0913_000_TRA

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Tough, hard wearing, in for the long haul.

There’s no doubt that we are very pleased with the team at TFI Earthmover and the BKT range of tyres. TFI continually deliver first class service with good back up and after sales support. The BKT range of tyres have proved to be economical, hard wearing and in it for the long haul. This gives us the satisfaction and peace of mind that allows us to focus on running our business more efficiently. BKT Tyres are obviously made to a high standard and their durability in abrasive work areas has reduced running costs. You couldn’t ask for more.

Patrick Schimanski, Managing Director, GWH CONTRACTING

For further information on BKT contact TFI Earthmover on 1300 916 556 or visit tfiearthmover.com.au

NCATF/046

We Go The Distance

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CRANES & LIFTING

Lifting the

STANDARD

An insight into a recent hoist upgrade at an Australian copper mine.

O

ne of the most im- plied a new hydraulic power portant aspects of pack and associated controls underground min- for the brake system of this ing is getting the ore out. friction hoist, utilising the For that you often need- existing Siemag(GHH) disc ed a dedicated and high qual- brake callipers. ity hoist syste, depending on According to the comthe type of mine. pany the system belongs to Siemag Tecberg recently the mine site proven Siemag carried out an electrical and ST N group of brake systems, controls upgrade on the pro- which have been designed for duction hoist at Northparkes hoisting speeds greater than mine earlier this year. four metres per second and The system has two braking functions to increase operating safety.

The 3 MW Koepe pro- feature controlled retardation duction hoist at Northparkes to ensure that the braking efThe two braking funcThe installed system conMines was supplied by MAN fort is sufficient to bring the tions provided include the sists of three channels that GHH in 1993, and designed system safely to rest, but lim- service brake for normal act independently, hydraulito hoist 815 tonnes per hour iting the rate of deceleration operations, which holds the cally and control wise, offrom a depth of 492 metres to avoid possible injury to conveyances at the end of fering a high level of integat a hoisting speed of 15 me- persons or rope slip. each cycle in automatic mode rity and redundancy. Each tres per second. SIEMAG acIn the unlikely event of or whenever commanded by independent channel offers quired the Hoisting Division loss of hydraulic pressure, the the winder driver when in closed-loop control, which of MAN GHH in 1997. multiple callipers are spring manual mode; as well as the modulates the hydraulic safety AAs M 0part 9 1of3 the _ 0recent 0 0 _ upK O N applied, 1 making 2 0 1 3the - 0system 8 - 1 5 T 1 6 :brake, 4 7 : which 4 3 + 1is0initi: 0 0 pressure in each channel to grade, Siemag Tecberg sup- fail-safe. ated by a system fault. ensure that the retardation

rate is within the design limits irrespective of direction of travel, speed and payload.

During the design of the upgrade it ensure that all of the equipment supplied complied with the NSW Department of Trade & Investment’s Division of Resources and Energy guidelines MDG33 and MDG2005.

CXT, More speed, produCTiviTy and preCision All Konecranes CXT hoists are united by speed and usability, enabling improved productivity. The hoist can be adapted to almost any application to ensure efficient and reliable operation, regardless of the operating conditions. We manufacture the critical components ourselves. CXT double girder trolleys have a totally new rope reeving system. The structure has been optimised in terms of payload and maintenance. The redesigned structure is up to 30% lighter.

31 Sales and Service Locations across Australia and New Zealand.

Phone 1300 937 637 Visit: www.konecranes.com.au Email: sales.australia@konecranes.com

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www.miningaustralia.com.au

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10th Annual Australian Mining Prospect Awards In this issue we have a brief word from some of the sponsors about their companies and why they choose to sponsor the Prospect Awards.

SEW-EURODRIVE

Boom Logistics

SEW-EURODRIVE is proud to be sponsoring the coal mine of the year award at the 2013 Australian Mining Prospect Awards.

As a key supplier to the coal mining industry, we believe in quality and efficiency when it comes to drive technology.

Supplying a range of industrial gear units, motors and drives for especially large movements, we deliver more than just products to heavy industry. A team of talented engineers develop effective and timely solutions based on customers’ motion requirements, which are backed by after-sales commissioning & product support that is second to none.

We also understand that time is money, so units are delivered within a matter of weeks from our local assembly plants, rather than waiting months for items to be shipped from overseas.

The coal mining industry is one of Australia’s strongest assets – as the world’s greatest exporter of coal, we can be thankful for an industry that has given us global recognition. SEW-EURODRIVE takes great pride in sponsoring the coal mine of the year award, which we hope in turn encourages the organisations in an industry which has greatly supported our company over time.

We hope that this award goes to a fitting recipient to provide them with the acknowledgment they deserve for making such a strong contribution to Australian industry.

SEW-EURODRIVE looks forward to further ongoing partnerships with all forms of mining, now and into the future.

Safety Always is a core value at BOOM; caring for the health and safety of our customers, people, environment and community drives all of our activities and decisions.

BOOM recognises the Australian Mining Prospect Awards as a prestigious event in the mining industry, and we are proud to sponsor the Excellence in Mine OH&S Award again in 2013, and to support businesses in this sector that reflect the same safety values held by BOOM. As Australia’s leading provider of innovative lifting solutions, BOOM combines expertise and experience with the largest fleet of cranes, including travel towers, access equipment and specialty engineering resources, to help solve your lifting challenges.

BOOM serves a diverse customer base, including the mining and resources sector, and is relied upon by some of Australia’s largest blue-chip companies. We help our customers to develop and execute the right lifting solution with a focus on safety, productivity, efficiency and customer service. BOOM seeks to be recognised as the safest and leading lifting solutions company in Australia.

Atlas Copco For over 130 years Atlas Copco has supplied the world with mining equipment, making it one of the most experienced suppliers in the industry. Since setting up shop in Kalgoorlie in the 1950s, Atlas Copco has learned from the very specific and in many ways original Australian mining methods, which differ from the rest of the world.

On top of higher demands on people and equipment, conditions faced in Australia (especially water) are very often tougher than most. One of Atlas Copco’s highest priorities is reducing people’s exposure to the drilling process and to the hostile environment often found in underground mines.

With our first experience in automation over a quarter of a century ago, and having spent the past 12 years refining our common rig automation platform RCS, the performance of Atlas Copco’s production drill rigs, RCS control system, rock drills, Cable bolting rigs and innovative braking system (SAHR) have set the standard in the industry for productivity and safety.

The Prospect Awards recognise personal and company achievements, and they recognise the new benchmarks these create within the industry.

As a company and as individuals, Atlas Copco and its staff are pleased to support this event the Contract Miner of the Year and Hard Rock Mine of the Year awards because we appreciate how hard it is to be at the frontier of mining.

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BASF BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. We combine economic success with environmental protection and social responsibility. Through science and innovation, we enable our customers in nearly every industry to meet the current and future needs of society. Our products and solutions contribute to conserving resources, ensuring nutrition and improving quality of life.

We have summed up this contribution in our corporate purpose: We create chemistry for a sustainable future. BASF had sales of €72.1 billion in 2012 and more than 110,000 employees as of the end of the year.

BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com.

BASF has been active in Australia for more than 90 years and about 60 years in New Zealand. In 2012, BASF posted sales of €540 million in Australia and New Zealand and had 507 employees. Further information is available on the Internet at www.basf.com.au.

Be a leader in Australia’s mining industry and nominate today

www.miningaustralia.com.au

AM3410_AWARDS.pdf

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AEST

TICKETS NOW

ON SALE DATE: Thursday 31 October

TIME: 6:30pm

VENUE: The IVY Ballroom, Sydney

MASTER OF CEREMONIES: Shane Jacobson

TO BOOK TICKETS OR FOR MORE INFORMATION PLEASE VISIT www.miningaustralia.com.au/awards or contact Ph: 02 8484 0882

TICKETS:

$165 per person or $1,430 for a table of 10 (inc GST).

Tickets include, admission, pre-drinks, three course dinner and beverages

PROUDLY SPONSORED BY

AM_0913_060.pdf

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MINING JOBS

AM

To advertise a new job contact Hussein Azzan at 02 8484 0852

To see the latest jobs available visit www.miningaustralia.com.au, which is updated daily.

Program Manager MMG is currently recruiting for the newly created role of Program Manager for our Sepon operation.

Our Sepon operation is an open pit copper and gold mining operation in south Laos. This position will be responsible for developing a program execution strategy and execution of nominated projects for the Sepon operation. Some of these include an acid plant, water treatment plant, lime kiln, new accommodation and an airport. The Program Manager will be responsible for the efficient and successful execution of these projects for our operation and more.

We are seeking a professional with tertiary qualification in mining, engineering or project management with a successful career in mining projects. You have a proven track record in project delivery of hard rock underground developments and solid exposure to field and office project management in the construction and commissioning of a range of large scale mining, industrial and process plant facilities.

To be considered, we are seeking a person who has management experience on the Owner’s side, mining project experience and practical expertise managing a multidiscipline project team on complex large scale projects.

This is a fantastic opportunity to work on a large high profile project within our organisation with a variety of challenges.

This position is a fixed term role for 3-6 months and is based in our Melbourne office. Regular travel to Sepon for periods of 1 to 2 weeks duration will be required for the success of this position.

Mine Surveyor Minerals and Metals Group (MMG) is one of the world’s largest producers of zinc as well as a substantial producer of copper, lead, gold and silver. MMG’s Century operation, located in North-west Queensland, is Australia’s largest open pit zinc mine. In production since 2000, Century comprises an open pit mine and concentrator at Lawn Hill, connected by a pipeline to the Karumba dewatering and shipping facilities.

A number of projects are currently underway to extend the life of the Century assets beyond the current completion of large open pit production in 2016.

MMG’s Century’s Mine Technical Services Department is now seeking an experienced and professional Mine Surveyor to join their team at Century Mine, Lawn Hill. Reporting to the Senior Mine Surveyor, you will be primarily responsible for recognising and developing surveying techniques to assist in operations optimisation and advising the Senior Surveyor of any technical or administrative matters of note.

Further responsibilities will include assistance in the following: • Collection of survey data for use in geological modelling and monitoring, mine planning, grade control, production reconciliation and environmental management; • End of month survey pickup and reporting volumes; • Provision of drafting and cartographic services; • Set-up and checking of high precision GPS Guidance systems, and; • Charting and recording of land use in terms of the overall lease and mining requirements.

As the successful incumbent you will have both well-developed technical skills and personal attributes, a certificate or a_ related MSf OfficePand SAPe knowledge, A Dqualification _ A M P inRSurveying I MA R 1 3 .field, pd a g 1 7 experience / 0 2 / in1Surpac 3 , mining software, RiscanPRO, Softrock Solutions and report writing skills.

SET TING THE STANDARDS WITH INNOVATIVE SAFE NS STORAGE SOLUTIO EFFECTIVE COMPLIANCE FOR THE MINING INDUSTRY '.1%#6#$.' $7.- 5614'5 #('6; %#$+0'65 #5 %;.+0&'4 5614'55 7$' 56#6+105 70&+0) #66'4; 5614#)' 7561/ &'5+)0 61 57+6 57+ 7+66 ;174 5+67#6+10 DESIGNED AND MANUFACTURED IN AUSTRALIA 1300 134 223 1300 307 895 5#.'5u5614'/#56#T%1/T#7 #7 7 999T5614'/#56#T%1/T#7 protecting the

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This role will operate on a 8/6 roster, FIFO from Mount Isa, Cairns or Townsville.

To start your career journey with MMG, submit your application online in either Word (.doc) or Adobe (.pdf) format by clicking on the ‘Apply’ button or visiting the job search page of our website – http:// careers.mmg.com/jobSearch.asp?stp=AW&sLanguage=en Site Nurse MMG is now recruiting a Registered Nurse on limited tenure for 12 months to join our Safety and Health Team on-site at Lawn Hill, Century Mine. Reporting to the Health & Hygiene Coordinator, you will provide support to all employees at Century mine in relation to first aid, emergency care and health and wellbeing issues. You will be proactive in the promotion of a healthy lifestyle and fitness for work program encompassing – health surveillance, bio monitoring, fatigue awareness, workplace rehabilitation and drug and alcohol testing.

This role operates as a sole practitioner and requires exceptional skills in first aid, emergency response, workplace rehabilitation programs and medical procedures including: intravenous cannulation, cardiac monitoring, audiometry, spirometry and suturing.

You’ll be familiar with a patient information management system such as Medical Director and be literate in the MS Office Suite. Qualifications as a Workplace Rehabilitation Coordinator, Remote Area Nurse and Immunisation Endorsement will be highly regarded.

Onsite accommodation at Century’s Darimah Village is fully air-conditioned and includes room cleaning service. Village features include meal services and access to a site personal trainer, gym facilities communal computer/media facilities including 3G coverage, onsite convenience store, onsite Medical Centre, state of the art sporting and gym facilities, and 25 metre swimming pool. The remuneration package includes an attractive base salary, site allowance and a range of salary sacrifice options.

To join the next generations’ global mining company, please submit your application online in either Word (.doc) or Adobe (.pdf) format by clicking on the ‘Apply’ button or visiting the job search page of our website – http://careers.mmg.com/jobSearch.asp?stp=AW&sLanguage=en.

All applicants must apply directly to MMG to be considered – in this instance, we will not be accepting any submissions from recruitment agencies.

Acoustic Engineer Hushpak Engineering is seeking an acoustic engineer with strong technical skills and practical experience in noise attenuation and design who wants to develop their career within a small but rapidly growing organisation. The successful candidate will work with our strong and diverse client portfolio and capitalise on new business opportunities in mining, manufacturing and other industries. This role will suit someone who is keen to move into a senior role and pursue a potential management opportunity.

The role will involve the following key activities: • Noise measurements and reporting • Developing solutions to challenging noise and vibration problems in an industrial or mining context customers to assess and understand their needs, resulting in successful project delivery 1 1• Interacting : 4 9 with AM • Practical, hands on involvement in design and application • Proactively seeking new business opportunities • Management of acoustic projects • Preparation of high quality tenders and technical reports To be successful, you will possess the following: • 5 years of experience, preferably in practical attenuation design and application • Degree in Mechanical Engineering or equivalent discipline together with experience as an Acoustic Consultant or post graduate education in Acoustics • Solid skills in engineering investigation and problem resolution • Demonstrated practical background in engineering • Demonstrated experience in management of design budgets • Excellent oral and written communication skills.

• Ability to develop new business and manage customer relationships • Current drivers licence The position will be a permanent full time reportin to the technical director.

For more information call Michael Neville on 02 4924 5400, or submit your application to recruitment@advitech.com.au Training Advisor MMG’s inaugural mine development project, Dugald River, is a world-class zinc-lead-silver deposit located in north-west Queensland. With a development capital expenditure in excess of AUD1,400M, the scope of the project includes a two million tonne per year underground mine with twin decline access and conventional long hole and bench stoping; fine grinding and flotation circuits and a combination of existing and developed rail, storage and ship loading facilities.

A unique opportunity exists for an experienced Training Advisor – Surface Operations based at our Dugald River Mine. Reporting to the Human Resources Superintendent, you will be responsible for the development of the training strategy which will be the foundation of a training function for the Dugald River Mine. The strategy will include the development of site wide training and skills matrices, and the training processes necessary to support a world class mine.

As a successful incumbent, you will have had previous experience in the development of training strategies and systems associated with the set up of a new business entity, preferrable in the mining industry. You will also be experienced in the provision of training and assessement services, to ensure business and legislative needs continue to be met for the Dugald River Mine. A key responsibility will be the supervision of the assessment and training undertaken by consultants used by MMG on the mine site.

Important to the role you will be your strong demonstrated experience within a similar role and have a Diploma in Management to enable delivery of Supervisory and Frontline management courses. To further your success to the role, you will have a high level communication, interpersonal, influencing and presenting skills, successfully managing cross cultural relationships, driving performance with a strong consultative approach.

This role will operate on an 8/6 FIFO roster from Townsville, Cairns, Brisbane or Mount Isa. To start your career journey with MMG, submit your application online in either Word (.doc) or Adobe (.pdf) format by clicking on the ‘Apply’ button or visiting the job search page of our websitehttp://careers.mmg.com/jobSearch.asp?stp=AW&sLanguage=en www.miningaustralia.com.au

QDM0333_Hotels_AM_R[DRAPTI].pdf

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AM0913_062.pdf

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EVENTS

Conferences, seminars & workshops Event submissions can be emailed to editor@miningaustralia.com.au Borealis conference: Community benefits – creating a positive change 18 September Brisbane, Queensland A conference focused on mining’s social licence and working closer with the communitiy. Guest speakers will discuss the opportunities and challenges the resource sector is facing, and what we need to do differently. Themes include local procurement, local employment, changing expectations, conflict and internal coordination. You will have the opportunity participate in workshops with other industry leaders and share your experience in area of community benefits.

• Borealis Conferences www.boreal-is.com

The Australian National Conference on Resources and Energy (ANCRE) 2013: The Insider’s Story 3-4 October Canberra Theatre Centre, Canberra The Australian National Conference on Resources and Energy (ANCRE) 2013, is the pre-eminent conference for policy makers, industry leaders, academics and international experts to canvass the issues facing this important sector. Hosted by the Bureau of Resources and Energy Economics (BREE), the leading agency providing economic analysis on the resources and energy sectors to Government, attendance at the conference is a must for those that want to help shape the resources and energy agenda now and into the future. ANCRE 2013, held at the Canberra Theatre Centre, is the only national

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conference that provides independent and impartial analysis on the global and Australian perspective on resources and energy.

• Key Conference Solutions www.ancre.com.au

Gold Investment Symposium 2013 16 October Luna Park, Sydney The 6th annual Gold Investment Symposium, Australia’s leading precious metals event, is being held in Sydney, 16-17 October 2013.

No other event in Australia attracts the highcalibre speakers, companies and investors that attend the symposium.

This year, bullion experts, miners, investors, brokers and advisers have already started registering for the event. Not only do they attend to gain a greater insight into the current market and its potential opportunities, but also to meet with these experts, and network with industry leaders and other like-minded people.

It will provide outstanding line-up of

international and local keynote speakers; audience interactive panel discussion with industry experts; mining companies highlighting their investment opportunities; networking drinks and the 2013 Gold Awards Dinner; and an opportunity to win real gold and silver.

• Gold Symposium 02 9299 4350 www.gold.symposium.net.au

Resources RTO Association 2nd Annual Conference Sunshine Coast, Queensland Queensland’s premier resource training sector symposium, the Resources RTO Association 2nd Annual Conference, will be held at the Sunshine Coast in October. The two-day conference event, to be held at Palmer Coolum Resort from 23-25 October will focus on promoting safety practices through the use of effective training methods.

To be officially opened by The Honourable John-Paul Langbroek MP, Minister for Education, Training and Employment this is

a great learning and development initiative supported by the resources sector and expected to once again attract key industry and government representatives.

The two-day conference event, to be held at Palmer Coolum Resort from 23-25 October will focus on promoting safety practices through the use of effective training methods.

The 2013 conference looks set to capitalise on the success of last years’ event with interest from industry representatives within the resources sector including coal, coal seam gas initiatives, metals, civil, drilling and quarrying, cementing the Resources RTO Association Conference as the peak industry meeting for the setting of new benchmarks for training and safety in the resources field.

The Resources RTO Association Inc. President Tony Mapp said the conference will provide training practitioners from industry and RTO’s with an opportunity to influence leading practice and progress the quality of training in the Queensland and Australian resources sector, align the site training standards and RTO delivery, and improve the consistency and transportability of skills within the resource sectors.

The theme of the conference will be ‘influencing leading practice’ and provide training practitioners with an opportunity to hear the latest on the state of the Queensland resource sector, industry leading training practices, and solutions to common training implementation issues.

The conference will bring people together across the mining and resource sector in Queensland including legislators, site training personnel, RTO personnel and service contractor and labour hire personnel.

• Resources RTO www.resourcesrto.org/conference

www.miningaustralia.com.au

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Rollover compliant to Australian Design Rules with a Rollover Protection System to Australian Standards 1636.1 and 2294.2

Tilt cab for easy maintenance access

Quality Isuzu truck with excellent back up

AM

Bus module transferable onto new cabchassis when required

Australian designed and built air conditioning for rugged and remote conditions

Comfortable coach seats with seatbelts

Safe as ... tough as ... comfy as ... Aussie as … an Able Bus & Coach Safety sets these vehicles apart.

This includes, as standard, built-in Rollover Protection System (ROPS) to Australian Standards 1636.1 & 2294.2 and Australian Design Rule (ADR) rollover compliance.

Critically all engineering tests are validated and vehicles exceed the Australian Design Rule weight standards of 65kg per person by a minimum of 53 per cent.

Able vehicles are tough and engineered to deliver outstanding reliability.

The air conditioners are West Australian designed and built to withstand extreme heat and vibration experienced in Australia’s remote areas.

All vehicle framework is grit blasted and primed to protect against the effects of harsh operating conditions above or below ground.

Able fabricated modules are designed for a larger, more robust modified chassis. This makes for a stronger, more reliable vehicle over its lifetime.

Another key feature is the ability for passenger modules to be removed

from an older cab chassis and placed onto a new cab chassis, reducing the overall replacement costs.

Able not only produce quality vehicles, but provide excellent parts backup with our own 400 square meter on-site parts and components store.

Able Bus & Coach is Australian owned; we don’t import modules from overseas.

Our modules and much of

the componentry are proudly manufactured in Australia.

Able buses have been delivering outstanding performance in tough Australian conditions since 1998.

Testament to the Company’s business philosophy of building tough yet safe, reliable and comfortable vehicles that meet the highest standards are customers such as BHP Billiton and Rio Tinto.